Case Analysis – Wright Line, Inc.

(A)

GROUP 4

MEGHNA BAGRI

NIHAL SINGH

N I K H I L M A H E S H WA R I

P R E R N A C H A U R A S I YA

RY T HM B AJ AJ

TA N YA J A I N
 5C Analysis
Company
Founded in 1934, Wright Line sold accessories used to store, protect, and provide easy access to computer media such as cards, tapes
and diskettes and any documentation material used with these media.
Was selling index guides for handling business machine punch card
Expended the product line to include Data processing supplies and capital equipment
Merged with Barry Control Company in 1960 to form Barry Wright Corporation
Products offered: Media used in computer system – Product to store, protect, transport and provide access to magnetic tapes and disc
packs

Product Group:
•Tape Seal
•Optimedia
•Terminal workstation
•Docu-mate
•Supply and accessories
•Databank
 5C Analysis
Customers
Customers were all the individual computer users and businesses using computer systems
Electronic data processing departments of large companies
Growing industries where computer use was high like Banking, insurance, high-tech manufacturing, government and the petroleum industry

Competitors
Only three major competitors till mid 1970s- Tab Products, Systems Manufacturing and Monarch Metals
The number had risen to 50-75 in 1982 into three groups: publishers of mail order catalogs, office furniture companies, and office supply
stores.
For catalog sales, competitors were divisions of large hardware manufacturers like IBM, Honeywell, Control Data, Burroughs, Wang, DEC, and
Hewlett-Packard
 5C Analysis
Collaborators
Wright Line was prepared to sell its products under the private labels
Architects and office designers to get products designated as office accessory standards in new installations
The company can collaborate with the direct personal computer manufacturer and can make their accessories offered at the same point from
where these products are being sold

Climate
The market of computers were going hence there was a huge potential to do better in the market however new innovation were being
continuously done in the market.
Decision problem

Right selection of a mix of channels for distribution to fragmented market.

To increase sales by deciding the product and its time of release, at a competitive pricing.
 Alternatives:
1. Immediate implementation of unit 1 and focus on development of unit 2
2. Creating a new low-cost product line for Unit 3
3. Channel selection as per urgency of product need
4. Implement unit 3 for expansion simultaneously with unit 1 for stronger direct sales
 Evaluation of alternatives:
Alternatives mentioned above can be evaluated on certain parameters for deciding the right mix of
distribution channels –

Maintenance cost, demand generation, resource are the parameters govern effective channel selection.
Apart from these other factors are:
In case of alternative 1, Immediate implementation of unit 1 and focus on development of unit 2 sales
cannibalization, low expansion.
Unit 3 is a long-term strategy which would require significant amount of time for implementation.
In unit 2, low ticket size customers are present which do not give higher conversion ratio. Also, long term
relationships are an effective customer retainment practice which would be difficult in case of unit.
Recommendations:

Short term: Implement unit 1 for quick sales and more control over resources.
Long term: Developing channels for unit 3 and competitively priced products as a
leverage to expand geographical reach.