Strategic Management: Handling Business Disruption

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author Note

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Executive Summary
Pro Go Pty Ltd, a well known manufacturer of high tech cameras has recently witnessed a
huge business disruption. A number of the cameras manufactured by Pro Go Pty Ltd have
burst into flames and without any reason. For this, the company has lost face both in
Australia as well as in the international market where the company runs its operations, with
the Chinese clients of the company wanting to end their contract with Pro Go Pty Ltd. This
report analyzes the role of the supplier company in handling the disruption. The report talks
about how the general manager of the supplier company can explore three options in
adjacent markets to combat the issue that has taken place, states the preferred option and
mentions the key implications for the general manager of the supply company in this respect.

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Table of Contents
Introduction............................................................................................................................2
1. Three Options that Exist in Adjacent Markets....................................................................2
1.1. Collaboration with Mobile Phone Manufacturers.......................................................2
1.2. Collaborations with Manufacturers of Self Driving Cars............................................3
1.3. Collaboration with Sports Equipment Manufacturers.................................................3
2. Preferred Option – Collaboration with Mobile Phone Manufacturers............................4
2.1. Mobile Phone Manufacturers Utilize Similar Components/Raw Materials................4
2.2. Long Term Availability of Raw Materials..................................................................4
2.3. Cheap Price of Raw Materials.....................................................................................5
3. Important Implications and Challenges for the General Manager of the Supplier
Company....................................................................................................................................5
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Introduction
Pro Go PTY Ltd, a well known manufacturer of high quality cameras, recently faced a
major disruption when a number of its cameras burst into flames for no reason. The
disruption caused a lot of damage to the international reputation of Pro Go Pty Ltd, with the
company’s major buyer in China threatening to cancel its contract with the company. Pro-Go
Pty Ltd relies heavily on its suppliers to see the company through the crisis, by ensuring the
provision of quality parts and components that can be used to manufacture quality cameras
again for the international and domestic market, and which will not feature technical glitches
that will cause such cameras to burst into flames again (based on case study scenario
provided). This report examines three adjacent options in the market that the general
manager of Pro-Go Pty Ltd’s chief supplier company can explore in order to negotiate
high quality camera parts that may be supplied to Pro Go Pty Ltd, for it to be able to make
cameras of a high standard once again. The report then proceeds to state the preferred option
and why, and concludes by mentioning the key implications that the scenario holds for the
supply company, and the challenges that it is likely to bring for such a company.
1. Three Options that Exist in Adjacent Markets
1.1. Collaboration with Mobile Phone Manufacturers
The general manager of the supplier company can enter into collaboration with
mobile phone manufacturers in order to acquire parts or components that can be provided to
the Pro Go Pty Ltd company, to enable it to manufacture top notch security cameras that will
be free from defects and which will not put the lives of users in jeopardy by bursting into
flames. Mobile phone manufacturers often tend to make use of parts or components that are
largely similar to those who use for the production of high tech sophisticated cameras along
the lines of Pro Go Pty Ltd. This is because all mobile phones today feature a camera, and a