Powrtron Corporation

Powrtron Corporation

• Founded 1965• Private and family health company• Sales of around $8.4 million • Manufacturer of analog integrated circuit• In 1998 engaged in the manufacture and

sales of electronic analog modules, isolation amplifiers, and power converters

Organization Structure

Management Details

• Top management viewed manufacturing as the strongest and marketing is the weakest

• Manufacturing capacity was physically constrained

• Tight local labor market• Produce 7 major products in house• Viewed quality as the most important

elements• Believe in providing a balance of

standard and custom products

Products

• Two analog business products :

PIN – PIN100sPIN300s (buy/resale)

IAAM

• Power converters - DC/DCDCT (Good and stable

products)DCD (Market not growing)DCJ (Small volume business)DCX (Big loser)DCZ (Future of power

converters)

Customers/Key Account Management

• Three tiers of accounts:•Tier 1 - unique and specialized products•Tier 2 - 10 major customers and 7 minor customers•Tier 3 - standard products to many different customers

Key Account Management

• Ensuring long term and sustainable business development through profitable partnerships with strategically important customers• Facilitates both radical innovation and

cross-functional working relationship• Involvement of the CEO and top

management are key to success

Six Elements of Key Account

• Relationship• Delivery• Growth• P&L• People• Internal Support and Obstacles

How to Develop Key Account Strategy

Competitors

•Market share $12 billion world wide• Comes from:

Japan 35%

USA 25%

Europe 20%

Size of competitors

Scale advantages throughout the value chain and produce highly standardized products

Tended to be subsidiaries of much larger integrated firm

Focused on a single core technology for quickly producing highly customize products

Large firms

Midsize firms

Small firms

Dealing with Competitors

• Don’t get into a price war• Zoom in your niche• Assess your competition and fill the

void• Seize the opportunity and be unique• Stop the bleeding• Once the dust has settled, consider

for co-opetition

Current Problems

• Late deliveries• Senior managers conflict• Unrealistic promise• Limited production capacity• Information flow• Customers dissatisfaction• Top Management prejudice

STRENGHT S

• Product Diversification• Quality Control• Innovative• Customer Needs (Customize)• Strong Customer Relationship

WEAKNESSES/COMPETITION

• Production Constraint• Old Facilities & Equipment's• Tight Labor Force• Offshore Manufacturing Capabilities not Optimize