SANSUI

Case in Marketing

Group 2

AGENDA

SWOT Analysis

Country / Product Matrix

BCG Matrix

Marketing Organization

What can we do?

SWOT ANALYSIS

SWOT ANALYSIS

COUNTRY / PRODUCT MATRIX

United State

United Kingdom

West Germany France Japan

Middle East Other EEC

Passive Systems O O O

Circuit Boards O O O O

Microchips

Telephones O O

Televisions O O O

Radios O O

Computers O

Alarm Systems O O

BCG MATRIX

Stars

o Microchips

o Circuit board

o Passive system

Question marko Telephoneso Televisionso Computerso Alarm systems

Cash cows Dogso Radios

Relative market share

Mar

ket

gro

wth

rat

e

High Low

Hig

hL

ow

FINANCIAL ANALYSIS

1963 1968 1971 1976 1981 19860%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Passive systems Circuit board Microchips TelephonesTelevisions Radios Computers Alarm systems

Sales contribution by market

FINANCIAL ANALYSIS

1963 1968 1971 1976 1981 19860

100

200

300

400

500

600

700

800

Passive systems Circuit board Microchips TelephonesTelevisions Radios Computers Alarm systems

Sales trend by market

FINANCIAL ANALYSIS

  1963 1968 1971 1976 1981 1986Profitabillity Ratio:            Gross Profit Margin 0.27 0.25 0.22 0.20 0.18 0.15

  1983 1984 1985

Liquidity ratios      ·         Current ratio 0.90 1.03 0.78·         Quick ratio 0.74 0.46 0.43·         Cash ratio 0.27 0.06 0.14       

Financial leverage ratios      ·         Debt ratio 0.81 0.68 0.88

FINANCIAL ANALYSIS

Increase in Sales but less proportionate increase in Gross Profit

Highest gross contribution in circuit boards and telephones

High sales in computers and microchips but lessẻr contribution in gross profit

Increase in bank overdrafts

Reduction in Cash balance

Doubling of inventory

MARKETING ORGANISATION

Sansui’s marketing organization is decided by the following factors:

The characters of semiconductor industry.

The marketing environment and geographic distribution of semiconductor industry.

Sansui’s company culture.

MARKETING ORGANISATIONA large factory with

relatively cheap labour

A large research and development

department employed about 500

Standardized products

Simple sales channel : rely on the distributors

and the specialist companies

The unique channel of raising capital : bank

The structure of the board:

the board members were in their sixties , two

appointed by the bank

5 offices in US,Europe and Asia

Highly standardized and international

Economies of scale and high volume production are crucial for

successThe price of products continued to

drop in real terms: low cost competition

Market monopoly by some large multinational companies

OEM/ODM limitation

Vertical integration: Volume production ( labour-

intensive)Specialize in design( capital-

intensive)

M

I

Founded in 1955

High level of bank borrowing

C

High investment in research

MARKETING

ORGANISATIO

WHAT CAN WE DO? Strengthen the marketing team. The marketing team reported on a geographic basis and there are the product divisions.

Employ the local people in the local markets for the local sales and marketing departments.

Analyze each product line on the basis of gross profit

contribution and net return, which can partly show us how to enhance operation management and reduce operation cost.

• Expand the channel of raising capital.

I just came back from NASDAQ. These USD can be

invested in expanding marketing share, building the new sales channels, developing more new

products….

WHAT CAN WE DO?

Looking for the strategic cooperators

• Sign the long term business contracts

• Being the shareholders

• Alliance on developing the new products

They are specialist companies who are strong at design and service and dominant in the market of end consumers.

A outstanding ODM which is

good at manufacturing at

a low cost

WHAT CAN WE DO?

THANK YOU