CASE STUDY

SHONKUTECH
TEXAS, USA

1
CONTENTS
1 PROBLEM STATEMENT AND CURRENT SCENARIO

2 SHONKUTECH - COMPANY ANALYSIS

3 COMPETITION AND SEGMENTATION

4 ADDRESSING LOOPHOLES

5 GENERAL MOTORS – BCG MATRIX

2
 PROBLEM STATEMENT AND CURRENT SCENARIO

PROBLEM CURRENT SCENARIO

PRODUCTS - Develops, sells and supportive services for
PCs and related products.

Shonkutech with more than 80000 employees facing:

➢ Growing market share
➢ Declining profits
Products not being further lucrative can lead to loss in
market share and capitalization
• Share price becoming constant
In US • Stagnation in company’s technology
• Existing products (not innovative) being user friendly
• Stagnation in company’s product numbers
• Loss due to customer claims in existing products
• Operational losses
• Competitors getting united & pushing lucrative
products to market
• Products not touching the upper income people in the
area

3

• Growing Market Share
• Presence in Top 5 IT Companies
• •
Worldwide Employee presence
• Global supply chain and
distribution system
• Geographically diverse revenue
mix
STRENGTHS
S W
OPPORTUNITIES
O T
• Innovation and technology
• Automation and digitalization
• Improving employee skill set
• Rising demand due to Covid-
19
• Boom in demand for child
friendly PCs due to Covid-19
• Online retailing
SHONKUTECH - COMPANY ANALYSIS
• High production cost in Texas
• Obsolete technology
• Lack of market forecasting
•
•
Lack of skilled resources
Inability to work on feedbacks
• Cyber attacks and data
breaches
WEAKNESSES
THREATS
• Negative media coverage
• Rising customer claims
• Rise of cloud computing and
mobile computing
• Strong competition
• US-China trade war (cheaper
products stealing the market)
• Complacency for technology
• Political stability in
•
operating nations
BREXIT affecting the market P • Demand volatility and
of US products in Europe currency manipulation
• US-China trade war • Strengthening of the dollar
Terrorist actions, conflicts,
against any foreign currency
wars
E gives rise to risks and leads
to decline in revenue.
• Mobile devices capturing
•
the social trends
Changing preferences of the
S
• Highly competitive
•
consumers
Localization of marketing
•
Technology industry
Rapid evolution of new
campaigns to sell in various
technology
cultures.
T
• Federal state, local and
foreign laws L • Focus on sustainability in
• Taxation, intellectual
twenty first century
property laws, labor laws
• Shift of business model,
and environmental laws
towards a circular and low
E •
carbon economy
R&D on recycling4 of e-waste
4
COMPETITION AND SEGMENTATION

SEGMENTATION

Proper marketing strategy can further add

value to the market capitalization.
Products if touching the upper income
sections of society can witness further
increment in their value like the Veblen
goods, thus leading to higher sales and
doubling profits further enhancing the
brand value of the product and company
and finally increasing the market
capitalization.

5
 ADDRESSING LOOPHOLES
Reducing the overall direct cost
1 Overall direct costs have a significant impact on the
gross profit margin. Look for opportunities of cheaper
raw materials.
Innovating the existing and developing new products
with the current technological advancements
3 Review the existing products and provide the necessary
updates to the products, according to the current
technology trends or discard the completely
outdated/unprofitable products.
Focus on Conversion rates, Customer Segment of highly
5 profitable products
Trying to increase the sales of the products with higher
gross profit margin, will help us to increase the overall
profit.
Review the current pricing structure
2 Raising prices can be a terrifying prospect, however
addition of innovative features can justify. Therefore,
correct pricing of the products is very important.
Reducing Overheads
Benchmarking the business to similar businesses in the
4 industry will help highlight areas for improvement. The
company can use the tools like Six-sigma to find out the
losses at each process units, further eliminating them to
enhance the terminal yield.
Complacency removal
6 Company needs enhance the skill matrix of people from its
various departments in order to sustain the future
competitive market.
6
7