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Parmeet Brar
Rajan Mittal
Manvir Singh
Rakesh Kumar
ARROW ELECTRONICS
Jan Salsgiver president of Arrow/Schweber A/S(Subsidary of Arrow
Electronics).
Both of them reviewed & developed express parts proposal system with colleagues.
Express to develop internet based trading system that would enable distributors to
post inventories giving customers large & small opportunities to shop for price.
Above system could also be a trade off against existing relationship with its supplier
& customers.
A/S president Jan Schweber was leading Arrow toward higher level
of technological expertise through technical certification.
Products & Supplier
A/S was a franchised distributor comprised of two chip
categories: Standardized & Proprietary.
Standardized chips were interchangeable & produced by
multiple suppliers.
Proprietary chips were manufactured by single supplier.
Strength
Invite only limited distributors to cater to
a larger market and increase sales at
less than half the cost via its branch
network
Reaching out to the additional business
that are outside the current perview and
selling to them
Weakness
The reduction in the overall gross margin
and slashing of prices due to competitive
market place.
Also since prices are open to the public,
bargain of lower prices by existing customers
may occur.
All transactional customers and about 40%
relational would switch to Express.
OPPORTUNITY
Express exists only to respond to demands
but not to create but A/E creates demand by
design wins.
Express may make reduce the effort in
building new relationship with new customers
Express may bring Arrow additional business
from potential customers that Arrow has not
been able to reach with its current business
model
Reduction in the time and effort of trying to
build new customers.
THREAT
Express may be used as a bargaining tool
Existing customers may bypass Arrow and go directly
to Arrows competitors
Arrows profit may be cut down due to an existence of
Express as intermediary
Risk losing franchise distribution or distribution due to
removal of their channel member status by the
suppliers