Arrow Electronics is a broadline distributor of electronics components. It is considering partnering with Express, a proposed internet-based trading system that would allow customers to compare prices from multiple distributors. There are advantages like accessing new customers, but also risks like losing existing customers or margins. A SWOT analysis identified strengths in reaching more customers at lower costs, but also weaknesses in reduced margins and potential loss of customers. Options include signing up with Express, creating its own online purchasing system, or both - to gain new customers while maintaining relationships and flexibility.
4. Both of them reviewed & developed express parts proposal system with colleagues.
5. Express to develop internet based trading system that would enable distributors to post inventories giving customers large & small opportunities to shop for price.
6. Above system could also be a trade off against existing relationship with its supplier & customers.
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9. Founded in 1935 to sell radio equip initially, and undergone a number of major changes since then.
10. Under Stephen kaufman leadership in1992 Arrow became no.1 among electronic distributors.
11. Arrow has out numbered various competitors such as Pioneer-standard, Wyle, Marshall Industries.
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13. Sales & Marketing function were divided among five operating groups, distinguished by product & strategy, individual responsible for asset & material management and P&L.
48. Express would expose our business to more customers. However transactional customers could easily switch to another distributor and potentially destroy A/S low price model.