Saturday, May 4, 2019
Case Discussion Question Essay Example | Topics and Well Written Essays - 3000 words
Case Discussion Question - establish ExampleProviding state of the art technology at a competitive price and with a amply value support system, Altera was able to steadily increase its revenues to staggering $1.4 billion by the first keister of year 2000. Thereafter, the world scenario, regarding the technology boom, took a downward plunge that threw the whole technology industry into a spin.The year 2000 onwards, saw an unexpected decline in the demand for the hi-tech goods that completely wiped out the beautiful players and left the big manufacturing companies with huge inventory that had far too few customers. Chipmakers and PC companies suddenly erect themselves with a glut of inventory and capacity. Networking and telecom equipment makers were particularly hard hit Cisco, more irrationally exuberant than most, was forced to write off a staggering $2.25 billion deserving of gear (Teach, 2001). Others also followed fount with huge quantity of unsalable inventory. Altera Co rporation too faced the repercussion of the time and had to declare goods worth $115 million as unsalable. One can gauge the extent of loss when Nathan Sarkisian, senior sin president of the company said Ive been in the chip industry for 20 years and I have never seen anything like this (article).The reason for this trend may be attributed to a wide miscellanea of causes but the main being that with the large number of electronics manufacturers and suppliers, it became difficult for the customers and distributors to identify who owns which surplus parts. composition at the same time, the grey markets in the networking equipments in the new emerging economies took a new mark that threatened the whole industries. At this very time, the PC companies became broiled in an unhealthy cut throat competition of waging price wars.The deteriorating market conditions demanded some hard hitting formulae to restrict the decline while at the same time, create effective strategy to counter the menace of such
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