Synnex Case Analysis

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Should Synnex extend to foreign markets?

Synnex realized that Taiwan wasn’t their opportunity for revenue and growth. Beyond their borders lies many other countries with opportunities. Synnex based their operations in Taiwan on understanding the local markets needs intimately and took advantage of the booming electronics market that they were experiencing. So they cannot simply extend their model as is to foreign markets. They must modify pieces of their model in order to be successful. They will need to understand the rules and regulations of new channels whether than be licenses or gaining distribution channel rights. They must find a way to form relationships with the small vendors in the local communities they will be serving. Also, they should look at the current gaps they are seeing in the distribution system. After all, that is how they became so successful in Taiwan was by innovating from the way everyone else went about business. They can utilize their current Management Information System to do research on Demand and supply to gain a better understanding of what to expect.

Should Synnex extend into covering new products?

How easily can Synnex go into e-marketing?

The internet is the means companies must take to get their platform to reach everyone in the world. For Synnex, it will not be difficult for them due to their sophisticated technology systems and organized structure. Also their logistics systems and management would allow them to reach end-users directly via a website. However, is Synnex the next amazon for the high-tech electronics industry? It will be a while before Synnex is able to get to that level. They must fully prepare themselves for the internet which will take some time. The process of filling online orders and returns is something that is very difficult to fulfill. It will need to update all of its customer information systems, set up online customer accounts, get a faster and more accurate delivery system, and ensure it has the highest quality suppliers. Synnex operates similarly to Amazon in that it goes after markets that traditionally were seen as unprofitable and operates completely to please the customer. Synnex does have logistics centers in multiple locations, but it will have to grow greatly and have a huge capital investment in order to get to the level that Amazon is at today.

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