SYNNEX INTERNATIONAL :

TRANSFORMING DISTRIBUTION OF
HIGH-TECH PRODUCTS
GROUP 10
ASMITA (PGP30304)
GARIMA (PGP30311)
NEHA (PGP30321)
PRASANNA (PGP30330)
PRATHIBA (PGP30331)

HISTORY OF SYNNEX
Started in 1975 as division of MiTAC 1 of
2 pioneer in PC makers (besides Acer)

In 1985 separated from MiTAC as an

independent firm, Micro Electronics Corp
Grew up rapidly. In 1988 incorporated
into Synnex Technology International
Corporation
In 1997 began overseas expansion, took
equity shares in several distribution
company in US, India etc.

In 2007, sales close to US$ 6 billion &

became third largest electronic product
distributor worldwide

WHAT SYNNEX DID RIGHT

Refused to fill
too large
orders. Instead,
increased
frequency of
delivery

Catered to small
outlets that were
neglected by
others

Inventory Control
Customer
management
Express delivery
Telephone sales
Service
differentiation

Broad client
base

No volume
sales

Application
of MIS & CIS
to business
model

No
reimburseme
nt for unsold
stock

Since it didnt supply large

orders, Synnex discarded
practice of reimbursing
unsold stock

SWOT ANALYSIS
Core competencies
Distribution services
Contract assembly services

Global business services (70% of worldwide revenue from overseas markets)

SWOT ANALYSIS
Strengths
IT expertise
Robust logistics network
After sales service
Efficient operational system (MIS, CIS)

Weaknesses
None identified

SWOT
Opportunities
Expand channels via e-commerce

Threats
Rapid change in IT industry

Increase product portfolio

Intensifying competition

Further expansion in Asia

Fluctuating demand

RECOMMENDATION: 1
Expand product portfolio: Consultancy services

PROS
Expertise in 7000 different
information products and
consumer electronics
More value to customer

One-stop shop for all customer

solutions

CONS
New competitors
Lack of experience in this area

RECOMMENDATION: 2
Market development in South Asia

PROS
No major organised player in
this area

CONS
Language barrier
Culture barrier

High market potential

RECOMMENDATION: 3
Market penetration using e-commerce channels

PROS
Increase in sales

CONS
Threat to brick and wall
retailers

Competitive advantage
Low expertise in e-marketing

Closer to customers

THANK YOU