As Mr. Grant, CEO of DMC has realized, the current growth strategy of the company is insufficient. DMC needs to identify their primary business problems and prepare a new or revised strategy with alternative tactics to address it.
Even though DMC had grown to become a multi-billion dollar company and consistently ranked in the top five in their industry, DMC’s returns between 2008 and 2012 showed great profits and loss swings unpredictably. These ranged from a net income loss of $1.5 billion in 2008, $1.9 billion in 2009, to a profit of $1.9 billion in 2010, $1.7 billion in 2011 then a loss of 1 billion in net income in 2012, the most recent year. (Table 1) Despite of the up-side-down net income and over $3 billion …show more content…
DMC can react quickly to market change and therefore save a lot of money in cost of unit production. B2C e-commerce has a lot of advantages in the business world nowadays. By using B2C, DMC can easily reach worldwide market with unlimited volume of customers. They also can display information, pictures, and prices of products or services without spending a fortune on colorful advertisements. By reducing the cost of advertisements, DMC can save a lot of money and use that to spend for new product development and make up the cost of changing strategies toward each functional division effectively. In some cases, B2C e-commerce makes order processing an easier task than before. With that, DMC also can save up a lot of cost production and use that to make the selling more effective. One of the biggest advantages of B2C e-commerce is that DMC can operate on decreased, little, or even no overhead.
Also, as VP of manufacturing Bret Hendricks expresses, DMC manufactured division already do a great job of controlling costs and improving processes. He strongly feels his group cannot achieve any more efficiencies from the manufacturing lines unless they do a major overhaul and replace some of the manufacturing systems. With the strong competition from foreign suppliers who receiving funding from government, DMC really needs to find a way to make the manufacturing processes strongly effective. That should be done even it takes a great cost and time to do a major