Chapter 3, Problem 1VC

Summary Introduction

Case summary:

Person RS started to repair computers while studying college in order to pay his bills. Person RS quickly noticed the changes in the technology and the needs of the consumer. Thus, with the help of Person S he found the Company GS in the year 1994. To make sure that the employees does not make a threat to the consumers they wore the uniform that consists of black and white clothes that is known as “GM”.

The Company GS charged fixed prices without considering of how much time was needed and they made house calls. In the year 2002, the electronics retailer Company BB has purchased the Company GS in order to decrease the rate of return on complex products. At present more than 20,000 employees of Company GS are working in Company BB. The Company GS repairs more than 3,000 personal computers a day and generate a profit of $2 billion.

Characters in the case:

• Person RS
• Company GS
• Person S
• Company BB

Introduction:

The variations in the marketing environment are the major source of opportunities and threats that has to be managed. The process of getting the facts about the external environment of the organization in order to find and understand the potential trends is known as environmental scanning.

To determine: The major environmental forces that made an opportunity for Person RS to start the Company GS