- Extending presence in those markets that have the greatest growth
- Potential for disruptive innovation
Threats
- An inability to adapt service offerings to customers that may lead a failure to compete
- Wrong definition of customers needs
- Compete successfully with the current off-shoring trend
- Threat of slowdown in demand from corporate customers
- Growth impairment of the market
- Occurrence in the IT market of new competitors with more favorable conditions of service
- Falling of demand for separate types of service
Information technology industry represents both a threat and opportunities. Take into account history development of the company and current strategic situation we can conclude that all strategy that the company follows is build on organization’s own capabilities. Organic development was the primary method of strategy development.
Computacenter should continue to follow the same method of development, because there are a lot of supporting evidence. Firstly, highly technical products and services available for themselves. May be some acquisitions are necessary in order to create new market opportunities. Secondly, knowledge and capability development. And lastly, the company invests over time, reinvesting profit into business, thereby avoiding the need for outside investments.
Recommendations for the future strategic direction:
- Expanding business and increasing turnover by carrying on doing what you are doing.
Computacenter may move to new different regions but still using original business model. In this way growth rate is natural.
- Computacenter should selling products in new geographic areas, or using new sales channels.
- Continue to Improve customer service
- Defending the relationships with existing customers
- Expanding the range of product offerings
- Investing in technology to assist with growth
- Expanding and optimizing the distribution network
- Improving overall efficiency
Conclusion
The goal of the assignment was to explore strategy of the Computacenter.
By considering corporate development history and current situation strategy, it became possible to identify direction for the future. Opportunities and threats for Computacenter have been estimated, basing on the analysis of IT-industry (using Porter’s Five Forces) and macro-environmental analysis (using PEST framework). According to the results of researches were given recommendations for the future strategic direction.
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[2] http://en.wikipedia.org/wiki/Computacenter
[3] http://www.computacenter.com/who_we_are/
[4] Annual Report Computacenter.2009. p. 2
[5] Annual Report Computacenter.2009. p. 2
[6] http://www.computacenter.com/who_we_are/quality/
[8] Annual Report Computacenter.2009. p. 17
[9] THE ECONOMIST INTELLIGANCE UNIT LIMITED.2009. Resilience amid turmoil. Benchmarking IT industry competitiveness 2009.[WWW]. http://www.eiu.com/PublicDefault.aspx.
[12] http://www.computacenter.com/services/transform/datacentre_technology_optimisation/datacentre_current_state_assessment.asp