• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Arrow Electronics Inc. - questions and answers.

Extracts from this document...

Introduction

Arrow Electronics Inc. Group 26: Karthik Sivaraman (224/39), Kishore Warrier (227/39), Rajadhyaksha Narayanan (322/39) 1) How do A/S sales people build their relationships with the customers? Specifically how do they leverage Arrow's product line B & S v/s VA products to add value to their customers? Transactional customers account for 25% of Arrow's sales and a majority of this is of the BAS type. Arrow was able to convert at least half of their transactional customers into relational customers in the long run. Customers want the convenience of submitting an entire bill of items for a quote, finding it more valuable to have a steady partner than rock bottom prices in the long run. At the same time they wished to get the best available prices. A/S provides this convenience and affordable prices. Arrow used the VA products as the first step to build a relationship, where the customers were provided with the best-in-class support. The gross margins on VA products are only 10-15%, as the customer threatens to switch to other distributors. The company in turns looks for commitment from the customers to buy BAS products exclusively from them. ...read more.

Middle

This flexibility will be lost when using express. Overall analysis of the case shows that there is not much to gain from using Express. In the long-term interest of the company it will be better if the company rejects Express proposal. As for the measures the company should take to counter the challenge posed by Express they should focus more on turning present transactional customers into relationship customers. By the year 2000 almost 80% of the business will result from value added services. The company should focus on providing these high value services, creating demand, gaining suppliers support and thus expanding the business. The price and order related information should be provided on the website along with all the services provided by the company. 5) Explore the relationship between Arrow and its suppliers. How do the suppliers reward-franchised distributors? What are design wins? Jump balls? Most electronic component manufacturers (suppliers) relied on distributors to generate demand of the 2 chip categories: proprietary and standardized. Standardized chips were interchangeable and produced by multiple suppliers whereas proprietary chips were manufactured by a single supplier. Many suppliers ship their proprietary and standardized products to arrow at list price or slightly below it. ...read more.

Conclusion

its competitor But Internet can definitely be converted to a friend, if used in a manner which is different for the competitors. The different ways it can be done is by: Incorporating the purchasing capability on the already available web pages of Arrow which at present give the product information and establishing an online store which the customers can directly access and book their orders. This way Arrow will offer something which its competitors not doing at present and get the first mover advantage in the market. By putting up online shop on its own Website, Arrow will be able to retain its contact with relationship customer and covert some of the transactional customers to relationship ones. It can also register at Express portal. This might lead to a loss of sales initially but that can be made up by focusing on Value-add business services which Arrow offers. Also by keeping competitive prizes on the Express portal, the danger of the cannibalization can be made up for. Arrow can use the Website to provide online consultancy and thus provide value-add to its customers and this will help it in focusing on the Value add part of the business which will be the growth area of the future. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level ICT in Business essays

  1. Marked by a teacher

    business online

    4 star(s)

    Set up and running costs Before any company considers in operating a business the company have to calculate the set costs and running costs these could be rent, purchasing the goods from a supplier, bills, wages and the amount of tax in which the company would have to pay to the government.

  2. Articles on franchise

    Purchasing Goods- The franchisor may restrict franchisees to only buying goods and services from him and possibly at expensive rates. The Disadvantages Of A Franchise Business To A Franchisor A franchisee may not provide a good service, which might damage the name and reputation of the franchisor.

  1. Implementation of ATMS at SBI. Banks in India are looking at deploying biometric ATMs ...

    Customer Service Related: � Ensure that disputes raised by customers are resolved promptly. � Ensure delivery of cards to customers within the prescribed Turn Around Time (TAT). � Contact Centre number and the ATM Officer's contact telephone numbers are invariably displayed in the ATM Kiosk for the benefit of customers.

  2. Air Products Case

    All these things listed above can be accomplished if two things changes: the organizational structure of MIS and HR takes a proactive role to hire, train and retain the skills needed to succeed. In Figure 2, the organization structure needs to become a federalist model where MIS becomes both centralized and decentralized.

  1. Springs Industries Inc.

    These companies demand that suppliers manage their existing inventories according to current purchasing trends, which are identified though the collection of Point of Sale (POS) data and the use analytical sophisticated Information Technologies (IT). Springs existing structure was not sufficient enough to accommodate the needs of these mega-retailers and was seeking to quicken to rollout of its new application technology.

  2. Improving Demand Reliability of Supply chain By focusing on Factory Responsiveness

    It manufactures in 26 countries in Europe, North America, Latin America and Asia. ICI's Paints business in India believes in innovation through technology and has developed strong brands such as * Dulux * Duco * 2K * Alabastine * Polycell * Polyfilla ICI has three manufacturing units in India located in different regions.

  1. Consolidated Purchasing In ABB India's Integrated Supply management organization

    The company has a vast installed base, extensive local manufacturing at 8 units and a countrywide marketing and service presence. As a strategic thrust to standard products business, ABB has a national channel partner network, which ensures geographical reach and penetration of its products and services.

  2. Alumina Inc and Business Regulations

    We know that under the Freedom of Information Act (FOIA), which was passed in 1966 by congress to provide citizens with a statutory right of access to government and business information (Davis, 2000); Kelly Bates will go after our records.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work