Kami Corporation

Kami Corporation

A Strategic Analysis

10/18/2010

Author: Charlton Crispin Roches

Table of Contents

Introduction 3

SWOT Analysis 4

Kami Corporation Strategy 6

Kami Corporation Problems Analysis 7

Recommendations 9

Conclusion 11

Reference 12

Introduction

Kami Corporation, a recently founded company, was a subsidiary of Mega Corporation. This company was established as a result of a strategic move by Aiwa to gain a bigger world market share in the TV industry, thus wanted to “push” TV on the market.

However, they did not want to strain their capital and managerial resources if it were to make investments in production facilities. Instead Aiwa’s new strategy was to concentrate its resources on product development and marketing and have other firms invest in the plant and equipment (Lecraw, 1997).

Conversely, Mrs. Lee, co-owner of Kami, saw an advantage in this strategy and capitalized on it. Kami was established in the Clark Special Economic Zone (CSEZ), which had a number of advantages. These advantages made it possible for Mrs. Lee to negotiate an agreement with Aiwa to produce, only for Aiwa, initially two models of television, 14” and 18” and subsequently, more models. In the first six months of production Kami would need to produce between 20,000 and 30,000 units per month being that orders would be in that range. Furthermore, capacity would have to be at 80,000 units per month. This was needed because forecasting showed that demand would rise in the near future for television and Aiwa would eventually require 80,000 units per month is the forecast was accurate.

The present environment in the Philippines would enable Kami to maximize on this agreement. The policy of the government in those regions was to have an import-substituting development strategy. This form of strategy allows the government to protect finished goods industries behind high tariff and/or non-tariff barriers to trade. They also imposed...