IPC CORPORATION

Problems/ Issues

• IPC expanded aggressively its retail outlet in Australia but many of these
stalls were not profitable.

• Some of consumers not receiving warranted technical assistance which

harmed IPC’s reputations.

• Korean’s CEO absconded because of the massive miss management and

fraud.

• IPC’s major product which is an integrated computer for homes failed.

• IPC’s telecommunication partner Hagenuk was discovered to be in severe

financial difficulties.

• IPC was hit with law suits for $32million in Korea and USA.

Relevant Management and Company Objectives

• IPC’s CEO decided to put his engineering background to good use launching
himself into the personal computer business.

• IPC market started with overseas markets and not in Singapore.

• IPC introduced a proactive five year R&D program to maintain its long term
competitiveness and product vibrancy.

• IPC introducing additional related products, such as POS terminals and a line
of RISC multiprocessor server computers.

• IPC wants to be seen as an IT conglomerate – a hardware, peripherals and

service provider.

• IPC wants to create a bigger market share through new products.

• IPC has decided to be a niche player in the computer world and putting major
efforts in telecommunications.

• IPC’s had a new vision under the label “Vision C” and listed its three main
business are:

i) Full Service Providers of e-Service System Development Centre

 ii) Thin Computing

iii) Wireless Telecommunications / Broadband Systems Integration

Relevant Facts

• IPC decided that their company needed to manufacture, distribute and market
its own personal computers under its own brand name.

• IPC achieved consistently high ratings in France and in 1993 briefly had the
largest sales of any PC manufacturer in the country.

• Competitive pricing combined with excellent after-sales service from Systec

inspired high levels of customer satisfaction.

• The Singapore KPMG High-Tech Entrepreneur Award for IPC’s CEO in 1990,
the 1991 Enterprise Award in Singapore and Singapore Businessman of the
Year in 1993.

• IPC established subsidiaries in Australia and Korea to access these important

Asian markets.

• IPC entered into three R&D contracts in 1994.

• IPC’s CEO announced that IPC would concentrate on three businesses which
are ultrathin clients, telecommunications and services.

Relevant Figures
 • By 1995, IPC had sales of $1.5 billion from the four corners of the globe and
had rapidly grown to become one of the leading Asian firms in the PC
industry.

• In France, the company’s market share surge from zero to 2.9% over the next
six years.

• By the end of 1994, within three years of opening its first store, IPC had 120
retail outlets in South East Asia and Europe, and owned all but a handful of
them.

• IPC commits over $3million to R&D in each fiscal year and harnesses a
bready pool of international talent through its network of direct R&D centres in
China, Singapore, Taiwan, United Kingdom and United States.

• IPC aborted its retail operations in the US in 1996 at the cost of US$100
million in lost annual revenues.

• IPC had expanded aggressively its retail outlet chain in Australia in 1994,
establishing 54 stores within a 13 months period.

• IPC Corporation (Korea) Ltd. Defaulted on $923 400 worth of promissory

notes.

• IPC choose to expand into telecommunications in 1996 by acquiring a 37%

stake in German firm Hagenuk Telecom (1996 sales: $400 million).

Relevant Opinions

• IPC’s CEO said that the only way to create a bigger market share is through
new products.

• IPC not only thinking about technology or production, but also emphasis on
channel and distribution management. This has differentiated IPC from the
other company.