Case Study

Gadgets Tools is one of the two big players among many small companies in the market. Gadget Tools can be said to lead the market, have products with premium quality. Gadget Tools' main competitor focuses on low-priced products and makes private label products for other retailers. Although it looks good, the industry development is felt to be slow by Gadget Tools and Gadget Tools has the desire to develop further but is hampered by human resources and cost factors. In addition, as a premium product, Gadget Tools has regular customers whose data is held by the customer service department. It is feared, if the employee is no longer working, the company will find it difficult to contact and still be able to serve well.

As additional information, Gadget Tools sells 70% of its products through 5 major retailers. These five retailers have asked for lower costs, but because it is not easy to find alternative products to replace Gadget Tools with the same quality, Gadget Tools products are the main choice. However, premium products from Gadget Tools are not primary needs that must be purchased by consumers, so consumers are free to choose whether they want to buy or not. Gadget Tools has a strong brand and has patents to protect its products.

a. Porter 5 Forces diagram based on the information provided! b. The company's strategy is to use the Information System that you feel is the most appropriate. Explain why! c From the alternative strategies for the companies that you described in the last number, write down 3 strategies that are the main priorities that you will run in overcoming this problem. Explain the reason