DIVERSIFY SALES & PRODUCTION
Byte should see how current products can be standardized and made into a product family. Should that not be possible, the company should examine different products for manufacturing as standard components, it will give Byte the opportunity to analyze various types of skills and markets.
It will also have the financial benefit of enabling Byte Products to achieve all of the following: -potential licensing of manufacturing or joint ventures sales to smaller customers through industrial distribution -a broader customer base to increase Byte's pricing leverage and production freedom -development of intellectual property (patents, process designs and copyrights) for licensing or cross-licensing.
At the same time, the company should take immediate steps to establish company direct sales in China, Taiwan and Korea, the 3 fastest-growing electronics markets in the world.
Advantages and Disadvantages
Foreign Licensing – will immediately meet or provide the increasing demand of Byte’s products. However, Byte Inc. could not then properly control patents and is potential for initial low product quality.
Utilization of an Abandoned Plant has no licensing whether foreign or domestic. Quality control will remain firmly in the company’s hands. There will be no product price increase. However, it will displace 1200 employees and about 4000 people including spouses and children after its 3 years of operation which will affect Plainville economy.
Implementation Plan
Is to survey and research household computer parts and components that which can be substituted from their higher and expensive counterparts, in doing so their customers will have a variety of choices within their allocated budget and will give customer satisfaction.
Is to setup a test run on sales on their new household computer parts and components to the market, Byte being a well known distributor of great quality electronic components will have the advantage of reliability and quality mentality from customers and will give a positive impact on sales.
Second Recommendation
First Recommendation
• First is to survey and research if their product is known in this countries and at the same time learn which electric components and parts is mostly demanded so that they can be ready in terms of supply if they are going in to these foreign markets for they strongly believe that Byte products should be domestically made.
• Second is to make their product known to these target markets, it may be done by advertisement, promotions and etc. so that potential customers will have a general idea of what to expect from their products and will spike their interest to their products.
• Third is to enter to the market while maintaining their product’s quality and their customer service top-notch, so they will invest in product quality and employee training. In my personal opinion they should go into the market in the direction of a frontal assault because being recognized in terms of quality for their electronic products is a sort of a high achievement for their company which can be accomplished by few.