This report is to discuss PMP corporation accompany that manufactures petroleum meter, pump and other products for service station. They also manufacturer printers, cash drawers, computers and other related products; the company has diversified at the same time expanded internationally. Their products include: cash drowse computers, electronic reset computer related accessories pulsars’ meters ticket printers and other related products.
(www.pmp-corp.com)Company objectivesThe main objectives of the company are to be a market leader in that manufacture of computer products, printers, and pump products. The short term objectives are too expand to various market segments such Africa.
Their mission statement is to provide a remanufacture products which perform sell than the new products.Company strategiesThe main company’s strategies are to diversify products so as to meet the needs of the market in all geographical segmentation where they operate. They also have strategies of reducing costs by outsourcing business activities and stay competitive. They have invested technology such as remanufacturing so that they can behave better than new products. Technology has also assisted them through internet and possibly has online shop to sale their products.
They have developed differentiation strategy that assist them in succeeding in the market.Generic strategiesThe company has adopted three generic strategies as stated by porter which include differentiation. Differentiation for the company to produce various products ranging from computer, printers registers and pumps.They have also adopted diversification into various markets using various value chain to different markets to reduce the impacts of product differentiation. They have taken cost leadership as another strategy have different costs and reduce cost of production this is through out sourcing.
SWOT analysisStrengths:1. First to launch refurbish pumps as well as other station products therefore customer confidence high2. Low product costs – integration between subsidiaries3. Highly experienced management and staff4. Growth by increasing market share through acquisitions5. Able to promote several products in one place6.
High operation margin, no risks relating to profitabilityWeaknesses1. Barriers to enter Foreign Markets2. Licensing problems3. Highly competitive market4.
Declining ROCE and Revenue Growth5. Raising money from banks rather than shareholdersOpportunities1. Growth by increasing market share through mergers and acquisitions2. Develop new products which link to changing peoples lifestyles such as refurbished products.3. Incorporate new technologies such as internet shop and advertising to stay ahead of the competition4.
Enter overseas markets such as china, India5. Launch other products such as mobile telephones Telephone and lap top manucture.6. Use celebrities in advertising the products of the company such as 5cent, Ronaldo and many other celebrities known world wide.Threats1. Keeping control in family – Lack of knowledge, Investors unhappy2.
Debts going above the value of total assets3. Economy - Expensive borrowing4. Expansion, Mergers and Acquisitions – could lead to failure5. Rules and Regulations of different countriesThe biggest threat PMP Corporation facing at presently is from rival companies which is offering its products and services cheaper than News Corporation and could lead to their market share dropping as well as revenue.Problems of the companyThe future of the company is still the major problem of the company as it is not clear the direction of the company taking either entering electronic devices or manufacture or refurbishing of pumps.
Secondly whether it will continue under the influence of the current management.
