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Background: Everelite Technology Co.

, Ltd, was established in May 1994 and is one of the most successful IT solutions provider of software and services. There are three main business categories: products, projects and services. The new e-business model has boosted the growth of the information industry in the market size in recent years. Its main business lies in the project and services categories. The demand for information services comes mainly from the finance industry, the manufacturing industry and government. In 2008, with the economic recession and restructuring of the finance industry, the demand for IT services from the finance industry was low. The electronics manufacturing industry also slashed their IT budgets substantially. All these factors contributed to the decrease in revenue for the information industry for the year. Everelite had increased service capacity and undertaken a major marketing campaign in an attempt to go global. Thus far, sales have not reached the forecasted level, the company incurred higher than projected costs and the company recorded a huge loss for 2008 instead of projected profits.


Problem Statement How can Everelite Technology Co., Ltd. improve to meet their attempt to go global?


Objectives y y y To know the different factors that affect the globalization of the company To identify a strategic plan that will aid the company to sustain itself in the long run To evaluate the companys capacity to meet the possible production needs


SWOT Analysis Opportunities -global expansion Market Penetration Market Development Capital Structure Threats -competitors Research & Development Acquisitions & Mergers

Strengths -high quality products -leading e-business provider Weaknesses -debt


Areas for Consideration y E-business It is the application of information and technologies in support of all the activities of business. Electronic commerce focuses on the use of ICT to enable the external activities and relationship of individuals, groups and other business. The company should maintain their position as one of the leading e-business providers because this is the nature of their business. y Technology It includes the science and technology required for the production, the technical tools that are used in the manufacturing or the technology of the product itself in case of high-tech industry. Since the companys main business is related to technology, it should constantly improve its technology to keep up with the current trends and so that it would maintain its competitive advantage. y Suppliers The company depends upon suppliers for the availability of its resources for its operations and productivity. Every organization uses certain raw materials to manufacture its products and services, any disruption in its supply can have adverse effects to the companys production. This is the reason why the company must ensure to have a good relationship with its suppliers. y Competitors It comprises of the related industries with similar products or services, their geographic locations and markets. It is important to know all of the competitors, their organizational size and skills pool, their competitive advantages, their marketing strategies and offshore development to be able to maintain their market share. Due to increasingly broad world economy, it is important to watch the competition across the oceans, competitive products launched from abroad, the changing socio-political situations, and home grown entrepreneurs that might pose a threat to the company. y Customers They are the end-users of the product and services, the most critical aspect of the external environment. Customer likes and dislikes changes rapidly, people live in a tight social system that create and encourage trends. It is important to anticipate changes in users product requirements, emerging technologies that can change how the

products are used. Such changes affect the customer preference and the mass market trends. y Globalization It raises capital, obtains materials and components. It minimizes the importance of national boundaries and develops transnational brands. This should be considered since this is one of the main goals of the company.


Alternative Courses of Action 1. Market Penetration This is a strategy for company growth by increasing sales of current products to current market segments without changing the original product. This can spur growth though marketing mix improvements by making adjustments to product design, advertising, pricing, and distribution efforts. 2. Market Development This is a strategy for company growth by identifying and developing new market segments for current company products. For instance, the company could review new demographic markets or new geographical markets. 3. Research & Development Conducting research aids the company in a way that it gives them the idea of what the market wants. Product development is a strategy for company growth by offering modified or new products to current market segments. 4. Capital Structure This is the mix of debt, preferred stock and common equity the firm wants to have. This is used in order to minimize the debt that the company has. The target may change over time as conditions change; but at any given moment, management generally has a specific debt ratio in mind.

5. Acquisitions & Mergers This is the strategy wherein the company acquires or merges with another company belonging to the same industry. This aids the company in their goal of globalization since the company they acquired or merged with already has a present market which they can use to their advantage.


Recommendation The group chooses Alternatives 3 and 5 because these are the ones which are considered the best in meeting the companys problem. From what was stated, it can be inferred that the cause of the problems can be attributed to the companys lack of research. Further research will enable the company meet their forecasted sales level and to solve the problem regarding their high production costs. Product development allows the company to have the best products in the industry. Thus, it gives them an edge over their competitors. It also aids in maintaining their current market share and increase their sales. Acquisitions and mergers helps in their goal of globalization. This is because it enables them to reach a bigger global market. In a way, it makes their expansion easier and more efficient.

Everelite Technology Co., Ltd., Part II

Submitted By: Alcala, Norma Grace Contemplo. Loui Dacuycuy, Alyssa Jimenez, Mark Kevin Panuayan, Desiree Solitrino, Bea Te, Hazel May Crystal

Submitted To: Maam Ingrid T. Corcino