ARROW ELECTRONICS

Presented by- Dilip, Ajay, Karishma, Vikas, Nikhil, Jayant, Suraj,

Adarsh,Pankaj

Suppliers(Eg: Motorola,

Intel etc.)--25% to 35%

of sales

Distributor(Eg: arrow)

Customers (like OEM)

THE WAY THE INDUSTRY WORKS

56%

20%

11%

13%

Existing Customers:

Small & Mid Sized OEMsContract Manufac-turersPC Clones(X86s)Custom Computer Products (CCP/ICP)

A/s Customers

WEAKNESSES

Reduction in Operating Income in 1996

Expenses at 11% with Gross margins of 15%

Express as a competitor

Cannibalization of BAS business if Express proposal accepted

Sustain No.1 position in Elec. manufacture

To manage the portfolio of Product

Accepting the Express’s proposal

To maintain relation ship with supplier.

Exiting customer may bypass A/S

Challenges

opportunities

Collaboration with Express

Learn to how to sell against “Going out of business”

They need to go further to make the relationship virtually unbreakable.

They need to get the customer to invest along with them in system and processes that enable them to provide value added services.

Because the trend towards greater demand for VA services is the best bet to counterbalance the high price sensitivities of their customers and the relational cheating takes place in their business.

Advantages

rice sensitive customers - Transactional

Costs incurred for relation building - Unnecessary

Eliminated with the advent of Express

Access to large no of OEMs

Market Leader and favored by suppliers

Can offer relatively more competitive prices

Shipping cost taken care by Express

Less Phantom Inventory

Reduction in time and efforts to build new customers

ANALYSIS

Business loss should be compensated

A/S prices are already very competitive

Expenses incurred on account of transactional customers eliminated

6% service cost charged by Express eat into A/S margins

Online website of A/S could be improved to offer purchasing facilities

THANK YOU