Strategic Management Report: Supplier's Role in Camera Crisis

This report focuses on a strategic management case involving Pro Go Pty Ltd, a high-tech camera manufacturer facing a crisis due to cameras bursting into flames. The report analyzes the role of the supplier company's general manager in addressing this disruption, exploring three adjacent market options: collaboration with mobile phone manufacturers, manufacturers of self-driving cars, and sports equipment manufacturers. The preferred option is collaboration with mobile phone manufacturers due to similar components, long-term raw material availability, and cheap prices. The report outlines important implications and challenges for the general manager, emphasizing the need to regain international reputation, ensure non-combustible raw materials, and maintain quality control. The goal is to help Pro Go Pty Ltd regain its market position and rebuild customer trust, particularly with key clients in China. The report underscores the need for the supplier to ensure high-quality, reliable components, highlighting the importance of strategic decision-making in crisis management.

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

1STRATEGIC MANAGEMENT
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.

2STRATEGIC MANAGEMENT
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

3STRATEGIC MANAGEMENT
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

4STRATEGIC MANAGEMENT
high tech camera at that, which can be used for taking professional quality pictures and
videos as and when needed. It will therefore benefit the supplier company greatly if it
negotiates with some of the key mobile phone manufacturers not only in Australia but in East
Asian countries like China and Japan in order to hit upon raw materials such as camera
components that can be procured for a cheap price and which can be supplied to Pro Go Pty
Ltd to get it to make desirable cameras again, with all safety measures being taken or looked
into this time around, during manufacture (Drejer, 2018).
1.2. Collaborations with Manufacturers of Self Driving Cars
The general manager of the supplier company can enter into collaboration with
those who are engaged in the manufacture of self driving cars in order to come up with the
right components that are needed for Pro Go Pty Ltd to manufacture cameras that will not
burst into flames again. Self driving cars are those that run on high tech components as well,
which are characterized by immense safety and security and do not ever threaten the lives of
passengers in such cars. The supplier company should negotiate a bulk order of components
that are used to make the self driving cars, in order to acquire them at an affordable rate and
make these available for an affordable price to Pro Go Pty Ltd in turn (Ellegaard, C., &
Schibsbye, 2019).
1.3. Collaboration with Sports Equipment Manufacturers
The general manager of the supplier company can also consider collaborating with
those who engage in the manufacture of sports goods or sporting equipment like smart
watches and smart golf watches for instance, in order to acquire the spare parts or
components which can be used for the manufacture of high tech professional cameras by Pro
Go Pty Ltd. The smart watches are products that can be used to record events and take
photographs if needed, in addition to keeping time, forecasting the weather and a whole lot of

5STRATEGIC MANAGEMENT
other things. The supplier company can definitely negotiate with key sporting equipment
manufacturers in Australia to strike a deal and acquire the raw materials that can be then
given to Pro Go Pty Ltd, for it to be able to manufacture secure and safe cameras for its
customers in Australia and around the world once again (Ivanov et al., 2017).
2. Preferred Option – Collaboration with Mobile Phone Manufacturers
2.1. Mobile Phone Manufacturers Utilize Similar Components/Raw
Materials
Out of the three options that have been mentioned above, a collaboration with mobile
phone manufacturers appears to be the most convenient and desirable thing to do. This is
largely due to the fact that mobile phone manufacturers make use of identical or very similar
components that are also used for the manufacture of the type of high tech cameras that Pro
Go Pty Ltd had launched in the market in Australia and worldwide. By acquiring such
components in bulk from mobile phone manufacturers in Australia and in China in particular,
and that too for very cheap prices, the supplier company will be in a position to make such
raw materials available in turn to Pro Go Pty Ltd at affordable rates. This will facilitate Pro
Go Pty Ltd to engage in the production of cheaply priced high quality cameras that will
attract the attention of customers in China and elsewhere who are presently upset by the
disruption caused due to the previous cameras bursting into flames. It is the cheap price and
the superb quality of the newly manufactured cameras by Pro Go Pty Ltd that will attract the
attention of international customers once again, encouraging them to go ahead and buy these
for long term use (Jiang et al., 2016).
2.2. Long Term Availability of Raw Materials
By entering into collaboration with manufacturers of mobile phones, the general
manager of the supplier company will be in a position to ensure the long term availability

6STRATEGIC MANAGEMENT
of the raw materials that need to be put to use to make the advanced high tech cameras that
Pro Go Pty Ltd is so well known for. It does not have to be a short term arrangement but can
instead turn out to be a long term fruitful partnership (Li et al., 2018).
2.3. Cheap Price of Raw Materials
Special efforts will be made on the part of the general manager of the supplier
company to negotiate with mobile phone manufacturers in China for the acquisition of the
components that are needed for the manufacture of high tech Pro Go Pty Ltd Cameras. This is
because China happens to be one of the major buyers of such cameras in the first place, so by
engaging in the cheap acquisition of components from Chinese mobile phone manufacturers,
the supply company can enable Pro Go Pty Ltd to engage in the manufacture of affordably
priced high tech cameras, thus winning back customers in China and elsewhere due to the
cheap price of the products and its high quality (Meyer et al., 2018).
3. Important Implications and Challenges for the General Manager of the Supplier
Company
There are a number of important implications for the General Manager of the Supplier
Company for Pro Go Pty Ltd –
 Pro Go Pty Ltd has lost its face internationally due to the fact that several of its
cameras have been found to be bursting into flames and that too without any reason.
Its chief customer in China has decided not to pursue any contract with the company
because of this reason, and there is a possibility that the company will lose out on a
huge amount of revenue if this decision actually goes through. As the chief supplier
for Pro Go Pty Ltd, the general manager has also lost face internationally, as it is the
raw materials that are supplied to Pro Go Pty Ltd that go into the manufacture of the
latter’s high tech cameras, many of which were found to be bursting into flames.

7STRATEGIC MANAGEMENT
Hence to regain its reputation in the international market, the general manager of the
supplier company must take care to provide high quality components to Pro Go Pty
Ltd, so that the new cameras manufactured are received well by the customers
(Sawik, 2017)
 Special care must be taken to ensure that the raw materials which are provided to Pro
Go Pty Ltd are not combustible in nature. If the raw materials are not inflammable
and not combustible then there is less likelihood of the new cameras bursting into
flames and causing serious injury or jeopardy to the people who decide to make use of
them (Sawik, 2018)
 The general manager of the supplier company needs to make sure to follow up with
Pro Go Pty Ltd to ensure that the raw materials which are provided to the company
for the manufacture of the cameras are those that are of perfect quality. If any
negative feedback is reported on the part of the officials of the Pro Go Pty Ltd
Company regarding the quality of the components delivered, then the general
manager can take immediate steps to ensure that the problem is rectified and that a
new batch of components is delivered to the Pro Go Pty Ltd Company instead (Van
Der Hurk, 2018).
 The general manager of the supplier company must make sure to buy its raw
materials from reliable manufacturers of mobile phone products in China and
Australia so that the components which are supplied to Pro Go Pty Ltd are those that
are hundred percent perfect in terms of quality. The supply company has been
providing Pro Go Pty Ltd with raw materials for the manufacture of its products for
quite some time now, and it needs to make sure that this always remains the case, if it
is to remain a supplier for Pro Go Pty Ltd over the long term (Sawik, 2017)

8STRATEGIC MANAGEMENT
 The general manager of the supplier company is a person who really needs to make
a special effort to procure raw materials for a cheap price and make such raw
materials available to the Pro Go Pty Ltd for an even cheaper price. This will enable
Pro Go Pty Ltd to sell its newly manufactured cameras to its clientele for reduced
prices, something that will definitely attract the attention of the customers who may
have currently refrained from buying such cameras because of so many of them
having burst into flames for no reason (Sawik, 2017).
Conclusion
Thus, there are quite a few ways by which the general manager of the supplier
company for Pro Go Pty Ltd can take immediate steps to make sure that the crisis brought
about by disruption, namely a number of Pro Go Cameras bursting into flames for no reason
is not something that is repeated ever again. Along with Pro Go Pty Ltd, the supplier
company has also lost face internationally and domestically and needs to be careful about
how it procures and supplies raw materials for Pro Go Pty Ltd to ensure that such an
undesirable situation is not repeated ever again in the future.

9STRATEGIC MANAGEMENT
References
Drejer, A. (2018). Disruption and Strategic Management. Global Business Review, 5(3), 1-10
Ellegaard, C., & Schibsbye, A. H. (2019). The Management of Disruption Supply Risks at
Vestas Wind Systems. In Revisiting Supply Chain Risk (pp. 393-406). Springer, Cham.
Hassannayebi, E., Sajedinejad, A., & Mardani, S. (2016). Disruption management in urban
rail transit system: a simulation based optimization approach. In Handbook of research on
emerging innovations in rail transportation engineering (pp. 420-450). IGI Global
Ivanov, D., Dolgui, A., Sokolov, B., & Ivanova, M. (2017). Literature review on disruption
recovery in the supply chain. International Journal of Production Research, 55(20), 6158-
6174.
Jiang, Y., Ding, Q., & Wang, X. (2016). A recovery model for production scheduling:
combination of disruption management and Internet of Things. Scientific
Programming, 2016.
Li, N., Chen, G., Govindan, K., & Jin, Z. (2018). Disruption management for truck
appointment system at a container terminal: A green initiative. Transportation Research Part
D: Transport and Environment, 61, 261-273
Meyer, A., Sejdovic, S., Glock, K., Bender, M., Kleiner, N., & Riemer, D. (2018). A
disruption management system for automotive inbound networks: concepts and
challenges. EURO Journal on Transportation and Logistics, 7(1), 25-56.
Sawik, T. (2017). A portfolio approach to supply chain disruption management. International
Journal of Production Research, 55(7), 1970-1991.

10STRATEGIC MANAGEMENT
Sawik, T., & Sawik. (2018). Supply chain disruption management using stochastic mixed
integer programming(Vol. 256). New York: Springer
van der Hurk, E., Kroon, L., & Maróti, G. (2018). Passenger advice and rolling stock
rescheduling under uncertainty for disruption management. Transportation Science, 52(6),
1391-1411