blue - Zippy Electronics November 29, 2006 MGT 8830 2 Zippy...

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Unformatted text preview: Zippy Electronics November 29, 2006 MGT 8830 2 Zippy Electronics EXECUTIVE SUMMARY 3 From 1925, when electronic circuitry was first conceptualized, through its various stages of evolution, electronic circuit-board technology has shaped societies around the world, and facilitated the growth of a global economy. Along with this constantly evolving technology, an entire industry has emerged to design, develop and support the use of electronic circuitry, which can be found in many products from simple children’s toys, to sophisticated computer systems. As the technology matured, a repair sector also emerged, and has become quite large. In fact, according data in the 2002 U.S. Census Bureau Industry Series, the electronic and precision equipment repair and maintenance sectors contributed over $16 billion dollars to the United States economy. One industry that makes use of modern circuit technology is the petroleum industry. Though the number of gas stations has been in steady decline, the number of petroleum dispensers has increased as a result of consolidation in the industry, and the emergence of large-format convenience stores and hyper-marketers. Today, petroleum dispensing systems utilize fairly sophisticated technology to extract and measure fuel from underground tanks, capture vapors, process credit card payments, and market additional products and services to consumers. As with all mechanical and electrical components, gas pumps eventually need repair. This need has created a market for re-manufacturers of component parts used in the repair and refurbishment of dispensing equipment. One such re-manufacturer, Zippy Electronics, is the subject of this paper. Zippy specializes in the repair and refurbishment of all components used for the purpose of dispensing fuel. Zippy has delivered consistent performance in its 9-year existence, producing double-digit growth each year. In 2006, revenues will exceed $11 million dollars. Despite its growth and apparent health, Zippy faces obstacles to its continued success and vitality. Zippy has an approximate 29% market share, and peacefully coexists with only a few small competitors. In the broader industry however, the electronics repair and maintenance sector industry is 4 at approaching? maturity. As companies operating in this broader, industry look for alternative growth vehicles, these companies will become aware of the opportunities that exist in the Zippy’s sector. The team’s analysis of Zippy revealed areas of significant vulnerability. First, Zippy has no formal business strategy, and any goals and objectives it does have are loosely-formed. Specifically, Zippy has no plan to protect itself from competitive threats nor is it even cognizant that such threats are possible in the form of new entrants to the sector. The principals at Zippy see their business as impenetrable, and pin this belief on the fact that the technology it uses is proprietary, and presents too great a hurdle or barrier for other firms to enter the sector. In short, the principals are complacent. great a hurdle or barrier for other firms to enter the sector....
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This note was uploaded on 11/10/2011 for the course MGMT 8830 taught by Professor Robertdesman during the Fall '11 term at Kennesaw.

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blue - Zippy Electronics November 29, 2006 MGT 8830 2 Zippy...

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