Beruflich Dokumente
Kultur Dokumente
Submitted by:
Group 5
ASHUTOSH KUMAR SINGH
GAURAV SHARMA
KISHORE SRIRAM
PRITAM KUMARI
MOHNISH SINGH
NEERJA MALIK
Flow of Presentation
About ARROW & A/S
Products and Suppliers
Top 4 Manufacturers
A/S Customers
Customer segments
A/s Suppliers
Express proposal
SWOT Analysis
Advantages and Disadvantages
Analysis
Recommendation
Arrow Electronics
Broad-line distributor of electronics
parts, including semiconductors and
passive components
Founded in 1935
Reached No 2 spot by 1980
Became number one among electronics
distributors by 1992
Sales of $6.5 billion in 1996
Arrow/Schweber
Jan Salsgiver president of Arrow/Schweber
A/S(Subsidary of Arrow Electronics)
One of Arrows five operating groups
Sells semi-conductors to different customer bases
like Original Equipment Manufacturers (OEM) and
Contract Manufacturers (CM)
Sales of 2.07$Billion of 6.5$Billion of Arrow
Electronics total Sales
Standardized Multiple
75% suppliers
A/S
25%
Singular
Propriety
suppliers
A/Ss Relationship with Suppliers
The big 4 top Manufactures
Altera -Proprietary programmable
logic devices
Intel - Mostly Propriety
But no VA Programming or engineering
support required
Texas Instruments
Motorala
Customer Segments
OEMs requiring
Short lead times
Orders of small quantities
Credit management
Value Added Services
Engineering support
Why required?
JIT
Hand off material Management
Customer Segments
Contract Manufacturers : Supply OEMs manufacture
Produce Circuit boards
Industrial computer systems
Requisites
Value Added services
Supply Chain management
Quick delivery
Competitive cost
No engineering support
Why required?
Price sensitive
Credit facilities required
More Value added services
Customer Segments
PC clones manufacturers : Intel x86 chip
11% of business
Requirements:
Commoditized or transactional
Credit
Relationship Customers
Initially mostly transactional
Value Added services
A/s and Internet
Non franchised distributors
Seen as not very legitimate
Reseller agreements lacking
Hence warranties not provided
Arrows website
Information provision
Fixed Costs
Purchase facility not online
Redirected to national 1-800 nos
Express The new Distribution
System
An internet trading system around a multi-
distributor bulletin board providing customers
large and small an opportunity to shop for prices.
Estimated 50,000 OEMs having access to the
service.
Allow customers to compare prices and to
bargain for the best price among competitors
Independent Distributor
Takes care of shipping to customers
Fee worth 6%
Express Parts
Non franchised distributor
Cost competitiveness
Margins narrowing
Express parts proposal
A/Ss full list of inventory and price listing
STRENGTHS WEAKNESSES
OPPORTUNITIES THREATS
Collaboration with
Express as a competitor
Express
Cannibalization of BAS
Learn to how to sell
business if Express
against Going out of
proposal accepted
business
Available options
Sign up for Express system with an optimism-
additional business and selling to those
customers that are out of reach of the current
business model.
Sign up would expose A/S to estimated 50,000+
OEMs Expand customer base and Increase
market share
Increasing sales at less than half the cost.
Cost, time and effort savings in serving and
converting low price shoppers into potential
customers.
Available options
Create Own Internet Presence
Introduce purchasing capabilities on website
already in operation
bargaining tool
sensitive