ORGANIZATIONAL CHANGE 2
Problem statement
This project paper will investigate the declining profits at Zetech Technologies.
The report seeks to establish the reason behind the declining sales of Zetech products, and
if any internal issues might be the cause of the poor performance. This paper servers as a
written report detailing the investigation, root cause analysis, solution, implementation, and
evaluation plan regarding this problem.
Company background
Zetech technologies finds itself in a very competitive industry, one that in the recent
times has seen major innovations take place. The mobile phone industry, which due to the
changing dynamics in the world of technology, has changed it to smartphone industry, where
mobile phones are becoming obsolete and inferior to the smartphone. Smartphone industry
is defined by the type of Operating Software a particular smartphone is using. Currently
the most popular Operating Software in the smartphone market include: Google’s android
software that is being used by high ended devices such as Samsung, LG, HTC among others,
Microsoft’s windows software, Apple’s IOs software and the Symbian software, that was
being used on Nokia smartphones until the adopted they window’s software from Microsoft.
Google’s android software appears to be controlling the market, with many phones adopting
it, followed by IOs which is limited to only Apple phones then to Windows which was
launched first on the Nokia platform. Zetech’s greatest challenge would be Samsung who
have emerged as the market giant in the smartphone market, even beating the arch rivals
Apple’s IPhone. Other key market players who possess a lot of challenge for the England
based company would be HTC and LG electronics (Falaki et al, 2010).
Zetech cooperation is a multinational cooperation, information technology
cooperation, headquartered in London, England. The company’s main products are portable
ORGANIZATIONAL CHANGE 3
IT devices and mobile telephones. The company, the company owns a networking company
known as Zetech Solutions and Networks, which provides telecommunications network
services and equipment’s. Zetech has an employee base of 101, 982 employee, and operates
in more than 150 countries. The company was co-founded by Fredrik Idestam and Leo
Mechelin in 1865. The company was established as a ground wood pulp mill in south western
England.
Problem background
In the recent years, Zetech did not only struggle in making improved phones for its
customers, but it struggled to adapt culturally to the changing business environment. Zetech
faced fierce competition from key players in the mobile sector. Asian manufacturers were
becoming more aggressive in the smartphone industry, so did American computer companies.
Zetech on the other hand was busy converting its operating software to open source, and
operating at a huge scale, with an excess of sales of 450 million devices annually. Zetech’s
major problems started when they failed to recognise the competition that was bring fronted
by Google’s android software. Zetech failed to establish a competitor movement for the
emerging Android software. In fact Zetech had the capability of overpowering Android
by the virtue of each participant market share. Zetech’s decline is often cited to Apple’s
entry into the smartphone industry. Apart from fierce competition from Google and Apple
smartphones, the decline in Zetech market share has been greatly attributed to Symbian
open source movement. Zetech leadership were responsible for the execution of Symbian
Open Source initiatives. No support was however given to the initiatives and the foundation,
which means no progress could be observed in this sector, and relatively contributed to the
decline in sales. The effects of this menace has greatly been seen on the overall performance
of Zetech handsets across the world, they have been overtaken by Samsung which controls
major stokes on the international market (Falaki et al, 2010).
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Root Cause Analysis & Results
The cause of this problem can be attributed to four major factors:
• Lack of new ideas
• Stiff competition
• Political
• Inability to recognise the competition
Inability to recognise competition
There is a reason why the once perennial market leader was eliminated to the second
position, and one of those reason can be attributed to either wrong business strategies or
naivety, one that would cost Zetech its market share in major international markets.
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