Reboot System: Competitive Advantage and Strategic Analysis Report

This report provides a comprehensive analysis of Reboot System, a rapidly growing technology refurbisher focused on PC refurbishing, aiming to bridge the digital divide in India. The analysis begins with an overview of the company's strategy, vision, and mission. It then delves into the external market environment using the PESTLE analysis, assessing political, economic, social, technological, legal, and environmental factors. Porter's Five Forces model is applied to evaluate the competitive landscape, including the bargaining power of suppliers and buyers, the threat of substitutes and new entrants, and the rivalry among competitors. Furthermore, the report employs Porter's value chain and VRIO framework to examine Reboot System's internal capabilities and sources of competitive advantage. The analysis highlights the company's strategic approach of offering frugal computers and addresses the challenges faced in achieving sustainable growth. The report concludes with recommendations based on the strategic analysis, emphasizing the importance of adaptability and leveraging competitive strengths. This report is contributed by a student and published on Desklib, a platform offering AI based study tools to students.

Individual Report

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Overview of the company strategy.........................................................................................1
2. Evaluation of environmental impacts......................................................................................2
3. Strategic capabilities and sources of competitive advantage..................................................5
Issues and challenges..................................................................................................................8
CONCLUSION................................................................................................................................9
RECOMMENDATIONS.................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Reboot system was the fastest growing technology Re furbisher and has a special
emphasis on PC refurbishing. This company were facing various challenges but still aimed to
bridge the digital divide in India by making the computers accessible to everyone (Guntaka,
Vobbilisetty, Gowda and Duraiswamy, Brocade Communications Systems Inc, 2016). In the
following report, reboot has been taken into consideration and their vision and mission statement
has been explained in depth, Further, PC penetration will help them to face those challenges and
bridge the Digital divide.
In addition to this, Pestle analysis model has been used in this report to analyse the
external market that affects the business environment. Porters five forces model was used to
analyse the competitive advantage in order to expand their business in India. Further, Porters
value chain and VRIO framework was used to analyse the internal market analysis that affects
the business and also the resources that were available will lead the cited company to reach the
boost and achieve long term success. From all this model that has been used in this report to
analyse the factors that affect the company internally and externally, it has been found out that
Reboot system applied various strategic approach as providing frugal computers to the customers
rather than cheap ones.
1. Overview of the company strategy
Rebooting was termed as the process by which the computer system that was running was
restarted knowing or unknowing way (Hall, Baker and Montealegre, Harman International
Industries Inc, 2016). Reboot started itself in a small business that basically used to resell the
computers that were used before in the market of unorganized secondary. They were also
striving in order to expand their business rapidly and also in organising the computers that were
basically unorganized. They obtained broader vision and also the direction in strategic way. This
further help the enterprise in harnessing the market potential and also the operational approach
that were multi pronged.
The vision of this system was that to bring out the technology in such way that does
directly or indirectly through others. And such that helps in building civil society that enables to
achieve success in the world specially for young people with low level income. Thus, the
mission statement of Reboot system was to inspire the innovator in everyone. They were further
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establishing network of redistribution stocklist across various states of India. For this, they
planned in order to expand their online supply reach pan India in next year. Thus to build the
strong and visble brand becomes one of the most important goals of that reboot team. So they
developed or produced logo and elements of branding that were used in order to create visibility
of the stores of Reboot. This element was used by them for all products that were sold by them.
Reboot catered primarily to top end of process related to e-waste management. By doing this,
they further believed that they were therefore extending product or computers usability and they
also tried to reduce needs in order to produce more new computers. Therefore, to build
awareness of opportunity became an important agenda of business and brand for Reboot
computers. Reboot system along with providing affordable and risk free computers also provides
with extension of life of that particular computers. Moreover, in order to spread further
awareness of managing e-waste through supply and also by purchasing used computers.
Thus, reboot system obtained funds or loan in order to expand and establish as the largest
national chain of computer retailers (Kaur and Goel, 2016). Thus, their vision of bridging the
digital divide by providing customers with affordable customers emerged as the robust agenda
for that particular enterprise. This aspired them to be the first and the largest retailers of
computers in the market of India. Thus, to become the largest retailer and entrepreneurial start up
they had to face stimulating challenge as lack of accessibility, affordability, awareness and
knowledge. Further, infrastructural resources and also the support in terms of policy from
government agencies made it as the mandatory in order to develop inimitable capabilities that
leads them in guaranteeing sustainability growth of such organisation.
The mission also stated that becoming first national provider of India that offers value-
priced, certified, co-branded, pre owned computers and al;so hardware. Further, all this must
offer with warranty and quality assurance.
2. Evaluation of environmental impacts
PESTLE analysis
This was the way that helps in understanding the external environment of the cited
organisation (Keegan and Green, 2015). This was the frugal solution for digital divide that
includes various factors which has very critical impact on the company and also drives growth in
the particular industry. Thus, these external factors includes the following-
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 Political factor- Political factors includes rules and regulations of Government. India was
a largest democracies in the whole world and it runs on federal form of Government. The
taxation system was developed well in India and business environment was affected by
multivariate political factors. Thus, the government of India was supportive in terms of
growth of Reboot system or any It sector. The government of India decided to contract
the job to IT companies that will lead in developing new opportunities in large extent for
Reboot systems in general. They have to closely analyse before investing into certain
market related to re furbisher. Authorities of government has been affected Reboot
system to large extent. They also affect labelling of a product and also other requirements
that is actually required in terms of re furbisher.
◦ Work week regulations in waste management
◦ Pricing regulations.
 Economic factor- Fluctuating currency also affects the Reboot system to a large extent.
Recession affected this company in vast manner as it affected the global economy. This
caused job layouts and cut off that leads towards low attribute rate. This way economic
factors affected Reboot system in great manner. Economic factor that has to be included
in waste management includes Government intervention in free market and also related
industrial goods that means that government basically tries to battle market inequities
through regulation, taxation and also subsidies. They also to intervene in markets in order
to promote their economic fairness and goals.
◦ Inflation rate
◦ economic growth rate
◦ Infrastructure quality in Waste management industry.
 Social factor- these factors range from employee rights, nationality and also the choice of
the customers in terms of IT sector. Shared beliefs and also attitudes of population plays
essential role at waste management that helps in understanding customers and later
design marketing message for reboot system refurbishing. Reboot system also has to
analyse education level as well as its standard in refurbishing including demographic and
skill level of population. This helps them in deciding target market
 Technological factor- Tariffs offered by India was very low as compared to the whole
world. Thus, it also has second largest in terms of telephone after china. The general
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factors that affect the business mainly includes 3D technology existence, speed and
power of calculation in computers, ability in order to create truly random numbers for
computers, efficiency of engine, internet connectivity, wireless charging, automation and
security in cryptography. India has also attempted in order to launch satellites into space.
Technological factors also had great impact because of the technological development
and advancement that was adopted by reboot system was very costly that affected their
cost structure to a large extent. In addition to this, it also helped in technological
development of a particular company.
 Legal factors- there were great acts which India has come up with and that have made it
easy for the Reboot system in order to develop on (Kuzma, 2016). Thus, notifications can
be easily issued by Government in the e-governance of web-signalling.
 Environmental factors- the conversation of environment and also the protection becomes
the main issue for the cited company Reboot System. Thus, to drop the balance of
environment has become the threatening to the sustainability of life and also of nature.
Further, reboot system or IT sector was affected mainly by floods, earthquake, cyclone
and tsunami. Reboot system requires significant energy in order to use in production and
operation of computers. Possible long term health effects an communities due to
chemical exposure and emissions has affected Reboot system to a great extent. Thus,
these things has to be considered at priority and accordingly implement plan in terms of
refurbishment.
Thus, this reboot system company has a good prospect in terms of future and has also become as
the ongoing requirement of India. In addition to this, it has also opened many opportunities for
the investors, youths and also for the countries.
Porters Five forces analysis
 Bargaining power of suppliers- The bargaining power was low of suppliers because of
small in size and large in numbers (Li, Zeng, Chen, Ogunseitan and Stevels, 2015). Thus,
the number of suppliers was high and Reboot has various options in terms of raw
materials. Reboot system was of large size and also holds immense target that was based
on the financial strength. Thus, low bargaining power of the suppliers was the main
reason of all this.
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 Bargaining power of buyers- The bargaining power was insignificant of the individuals.
The factors that specially fairish the buyers bargaining power includes lack of brands that
were famous, quality of the technology and service. This factors results in bargaining
power of the buyers moderately. Thus, Reboot system was trying to hardly push so that
the quality was maintained and also helps in attracting huge volume of customers.
 Threat of substitutes- threat of substitute products has grown in large extent for Reboot
system. Thus, there were number of brands that fights in order to enjoy huge market
share. And tries to work as the substitute for each other. A high increase in substitute,
leads in increase in threat in high manner.
 Threat of new entrants- PC industry requires huge amount of investment to build the
brand, so the threat in terms of new entrants was low in this industry. There was also the
requirements of many other things other than capital that reject any new player from
entering this market. So to enter into this market was very tough and new players fear in
order to enter.
 Rivalry among competitors- the level of competition was high in this type of industry.
The size and strength in terms of finance gives rise to the tough marketing that results in
intense rivalry. Threat of rivalry acts as the most important force in this industry. In this
way, competitive rivalry level has been increased in this market where intensity was at
highest level.
3. Strategic capabilities and sources of competitive advantage.
The value chain analysis
This was the strategy tool that was used in order to analyse the activities of the firm
internally. The main aim of this analysis was to recognise the most valuable activities of firm and
also about which of these can be improved that may later help in providing competitive
advantage (Szal, 2015). Thus, it has been discussed as per below context-
Primary activities
 Inbound logistics- here, the raw materials were received stored and distributed as per
required in the process of production.
 Operations- in this activity the raw materials were further turned into final product and
services.
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 Outbound logistics- this includes the activities of distributing final products that was
produced to the customers.
 Marketing and sales- this involves advertisement, promotions, sales force organisation,
distribution channels, pricing and also management of final product and also ensuring
that it has been reached to the targeted customer groups.
 Service-it refers to that activities that was needed in order to maintain the performance of
the products after it has been produced. It also includes installation, training,
maintenance, after sales service, repair and also warranty in terms of products and
services offered by cited company Reboot system.
Support activities
 Procurement- means the way through which raw materials has been obtained in order to
produce a product.
 Technology department- it was used in the stage of research and development and also in
the way of designing and developing new products.
 Human resource management- it includes the activities that were specially involved in the
process of hiring and retaining. This helps them in designing, building and marketing the
product.
 Firm infrastructure- it refers to the structure of organisation and also its management,
structure of planning, accounting, finance and also quality control mechanisms.
VRIO analysis
It was an analytical technique that helps in evaluating the resources of company that was
available and also helps in analysing competitive advantage (TO,and et.al., 2015). Thus, it has
been discussed as per below context-
 Value- in this the resources that were available were analysed and was further termed as
valuable as they have particular strength for Reboot system. They were also known as
valuable if they help in growing received customer value. Thus, it was achieved in terms
of increasing differentiation and also in decreasing price of a product produced by reboot
system. Further, resources can be mitigated due to various threats that includes threat
from suppliers, buyers, substitutes, rivalry and entry. Thus, if observe value chain of
Reboot system, resources and capabilities that were valuable can be easily identified
where they create their services and products. Thus, as per the choice that was made by
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Reboot system in respect of value chain becomes an important tool in order to determine
resource and capability of selected firm. Reboot system has enough valuable resources
that may lead them in order to achieve long term success and competitive advantage in
market.
 Rarity- The resources which were unique and few firms can obtain it was termed as rare.
Thus, there were two conditions that has to be satisfied which may help Reboot system to
achieve competitive advantage. Further, if any situation arises of same resources in more
than one enterprise it later leads to competition. The resources that are available with
cited company is actually unique which helps in refurbishing of computers. This
uniqueness makes reboot system different from that of competitors.
 Imitiability- resources may be imitated by others which means there was lack of
originality even of that product which was original. Thus, Reboot system has rare
resources and also rare capabilities which were hard to imitate by any other enterprise.
This leads reboot system to achieve competitive advantage in market and long term
success. In addition to this, if this was being discovered by different firms they will
respond to this in different ways. Level of imitation also depends on factor that was
related to cost. If cost is less in order to acquire resources Reboot system will further try
to imitate competitive advantage. Organisation- this was last step in VRIO framework. Organising of reboot system was
decided by various factors that includes reporting structure in formal way, control system
of management and policy related to compensation. Correct way of organisation becomes
necessary for Reboot system in order to achieve competitive advantage. Thus, they must
also have valuable, rare and expensive resource that may help Reboot system in order to
gain huge advantage in terms of competition.
Internal Analysis
SWOT analysis
Swot analysis was a framework or a technique in terms of strategic planning that was
being used In order to help in identifying strengths, weakness, opportunities and threats that was
actually related to the business competition. It has also been intended in order to specify
objectives of business venture or of a project that helps in order to determine internal as well as
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external factors that were unfavourable in order to achieve those objectives. Thus, Swot analysis
of Reboot system has been discussed as per below context-
 Strengths- Computer technology was becoming more ubiquitous with every passing year.
It includes the products that were well designed and which has been put out by the
company. The reboot system has loyal customers that were attracted towards them and
this allows them to achieve higher price from the customers as compared to competitors.
Thus, it was considered as major strength for selected organisation. Reboot system was
also enjoying huge income through use of website in technical way. Reboot system was
participating to international network of Zero waste that helped them in building place
between targeted customers and also market.
 Lack of maintenance cost
 There was the sensitivity of policy makers in adoption of policy that was
related to refurbish.
 Weakness- Weakness includes relative softness in that market which has been selected
for business (Zhao and et.al., 2017). Most of the products of selected company was
bought by everyday consumers which were not widely used by business. Thus, Reboot
system was the most common software that has been used and was find in all over the
world. For reboot system to adopt effective national legislation, they have to favour
reduction, recycling and also reuse of materials which was therefore difficult task for
them. The cited company required to keep their site up to date and also involve the
present information which customers required to know.
◦ Extension of this policy at national level.
◦ The site related to sustainable waste management must be kept up to date.
 Opportunities- The gap in market was main and most important opportunity for cited
company. Many people or consumers were using this computers as they have been using
maximum number of features that were new and expanded. This will help the stated
company to expand and diversify their business in the overall market outside India. This
also lead them in creating new jobs through green economy. As people feel good and
active in order to work in such company that works as environmental friendly and healthy
for environment.
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◦ There was a possibility in order to replicate good practice in other national
context.
◦ They also have ability in order to generate incomes.
 Threats- The major threat for Reboot system was growing competitors. These
competitors have affected this business in vast manner and may cause them with huge
loss.
Issues and challenges
From above analysis it has been analysed that Reboot system was been facing maximum
competition that was major threat for that company (Trace, 2016). There were many factors that
affects the working of business. As Indian government has decided to contract the jobs which
will help the cited company in order to develop new jobs. Further there was a high growth in
electronic products consumption. This made India to face high obsolescence rate of 30 percent
per year and has an estimation of 2.2 million computers and 14 million handsets of mobile to be
discarded.
It has also been analysed that reboot team planned as using multi prolonged approach in
order to reach multiple segments (Walden, 2017). Thus, they also planned to open a series of
Reboot branded. They believed that use of single channel may not be sufficient in order to reach
potential segments in market. They also managed high degree of penetration in country. They
found other channels where there were set of redistributors in various geographies that
understood the tiers 2 and 3 consumers and also the channels that were based online from which
individuals and institutions may reach out to Reboot for supplying or purchasing used computers
from them.
CONCLUSION
From the above report, it has been concluded that reboot system was a leading software
company of India that sells used computers in unorganized secondary market. It has also been
analysed that there were various internal and external factors that affect the cited company reboot
system to a great extent. In addition to this, it has also been found out that India desires to fill or
bridge the gap between technology haves and have-nots. Further, from this report it has also been
understood that it was the technology that had to be harnesses in order to bridge divide such that
all people available within a particular society has access to ICT.
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RECOMMENDATIONS
Reboot system must adopt following recommendations-
 They must adopt promotion strategy that will help them in communicating with
customers through advertising, sales, public relations.
 They may also adopt strategy in terms of location. This means that the cited company
must provide goods or products when they were actually in need. This will help them in
attracting huge volume of customers towards the brand.
 They must also observe that strategy that has been used may match position in terms of
advantage of a company.
 For this, they will also have to identify unique market place advantage and then focus on
doing that one thing better and in appropriate way than that of competitors.
 They may also make the page on Facebook and websites that had a presence of more
human oriented rather than entity oriented. This will help consumers to feel more
connected to the cited company.
They adopted PC penetration method and implement it in India that was set in order
increase from 4 percent in 2009 to 17 percent in 2015 within 58 million computers that were
projected in order to increase three to four times. Reboot system installed PC penetration. As the
IAMAI data indicates one of the dominant reasons for non-adoption of the internet is the lack of
access to computers. India presents a confusing picture from the perspective of ICT penetration.
If we look at three major indictors of analysis – the PC, the internet and the mobile phone – the
variations are surprising. The penetration of PCs in India is abysmally low, about 26 per cent.
Only about 3 per cent of India’s population owns a computer as compared to China where
ownership figures are five times higher.
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