Posted: May 29th, 2015

ABC Electronics

ABC Electronics

ABC Electronics is a major producer of computers, defense electronics and consumer electronics. Several years ago, ABC’s management laid off nearly two thousand employees and decided to drop its line of digital watches.

At the time, computer spokes people stated that these moves were part of ABC’s plan to restructure its business priorities. Industry analyst viewed the moves as a sign that views management system has fallen apart and the competitors claimed that company’s past technological and marketing improprieties were finally catching up with it.

Company’s insiders and former employees saw the moves as adjustments to a precession machine. In reality, the truth was somewhere in between. ABC was not selling business priorities for its goal remained to sell $15 billion of computers and defense and consumer electronics.

Technology is the key to ABCs strategy, but management realized that it had to deal with costly failures. The failure to listen to market place was the major reason for ABCs defeat in the digital watch business. In an aggressive selling campaign ABC kept pushing the utility and low prices of its watches when consumers wanted more fashion and more features. ABC did not adapt its product to meet consumer’s demands.

As a company founded on technology, ABC tend to have an engineering orientation. Most managers have engineering, not business degrees. Management energies are often focused on design and manufacturing process rather than customers’ needs. Moreover, Management has been unable to develop a long-term strategy that integrates thee resources to design, make and bring product to market. Executives frequently neglect to consider how much money its costs to market a new product until after it has been developed and produced.

Questions:

1. Which Concept or Concepts is ABC is following? Provide Justification to your answer
2. Do you agree with their current strategy, why or Why not?
3. Provide recommendations to ABC Company, Which concept in marketing they should ideally follow