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ENG12/B23

Case Analysis

PCL TV

Submitted by:
Submitted to:
Ms. Aerianne Mendoza

Case summary
PCL was a leading European customer electronics, lifestyle and healthcare
company that had entered the Chinese market in 1985. PCL was a high-tech global
company based in Europe. Since its establishing in the late 19th century, it had
differentiated into multiple industry sectors. The broadening strained its resources, and
consequently PCL had reshaped the organization to focus on the healthcare and
electronics sectors. PCL taskforces set up to study the situation found that control
measures designed to handle returns were simply not being agreed out by staff and
third-party after-sales service centers.

Problem

Short Term:

Increase repeat customers by 7% each quarter.

Decrease customer acquisition costs by 8% per year.

Increase brand equity, measured by the number of new customers that are
already familiar with PCL and their niche before arrival into the store.

Long Term:

Under 30: This market segment has a diverse interest that certainly overlaps with
the crowd. Under 30 years old people might have more of a concentration on
style, texture, and size. This is not to say that the people are about these
subjects solely, it is just that these topics might relate better to someone over 30.

Over 30: This market segment has a bit more mature tastes, the humor may be
more sophisticated, they are more likely to seek more quality, sustaining its

durability, etc. Generally, the PCLs TV sets will reflect issues that this group is
most used to or closer to their experiences.
Point of View
This is a product problem that dissatisfies consumers due to its defective
manufacturing, insufficient features or just without a good reason. The consumers want
to return their electronics mostly consist of TV sets because of several reasons.
Returning this product to the producers play a large role on the companys daily
expenses, the cost of returned set in its TV division grew and this is a product problem
for the company. This will endanger the company because they will be forced to refund
the consumers payment.

Areas of consideration (SWOT)

Strengths:

Low production cost


Knowledge about local market
Strategic alliance with suppliers
China was a market where the first mover enjoyed advantages over late comers.

Weaknesses:

Poor Brand Perception (Global)


Limited knowledge of Global market
Low inventory turnover
Continue to control all costs to maintain success

Opportunities:

TV sales are expected to grow


Increasing Global demand
Fast growing of international market
Providing one stop platform for distribution

Threats:

Heavy competition
Competition threats from local and international competitors
Product wouldnt sell in large amount, so pricing can be a problem
Software piracy and clone market

Alternative courses of action (ACA)


1. Recall the defective products
Positive: prevents the increase of returned electronics.
Negative: costly and will affect the companys income.
2. Replace the old electronics part with high quality parts
Positive: the finish product will be in high quality and durable.
Negative: it is costly especially in purchasing high quality parts.
3. Improved how the parts are being assembled by using advance technology
Positive: high quality products will be produced and ensured that it is built

to last.
Negative: it is costly because by using advance technology in
manufacturing it is really expensive.

4. Innovate the existing products


Positive: it will add new features to the product and consumers might be

interested in the newly innovated products.


Negative: there is no guarantee that your newly innovated product will
come up to the expectations of the consumer.