General Strategic Problem Formulation

General Strategic Problem Formulation

“How can Scantechno best reevaluate its current internalization strategy to meet the growing competition”

The first stage in solving any type of problem is to recognise and define exactly what the core problem is.

In your case we recognised the problem to be competitors catching up on Schantechno and the loss of several orders to rivals but also the lack of dedication for future investments for the company.

As you already might know, the situation is not yet that critical, but now is the time to put the foot down.

2005 has not been a great year for Schantecno and we can see a decrease in sales, there are many factors that contribute to this; competitors catching up with new techniques and the discounts that has been given to increase sales are just some of them.

SWOT

To get a clearer view of Scantechno’s internal & external affairs we have applied a SWOT analysis.

Strengths

•National barriers

•Reputation (high quality product, leading expertise)

•Market share (

•Positioning

•Experience

Weaknesses

High production cost -> pricing

•High production cost

•Products

•Lack of communication with distributors

•Marketing activities

•Strength of brand

Opportunities

Bonus programme for distr.

Develop our own sales dep.

Joint venture 50/50 w/ distr.

Invest in: New sales division, products, bonus programmes

Niche market

Enter new markets (Long term)

Outsourcing production

Licensing

technological development

Threats

•Technological development

•Competition (discounting)

•Manpower costs

•Loss of interest

•Discounting