1. What resources and functions does Tarbes command which have led those to accrue competitive benefit in the past?
Tarbes is a leading tech company in Brazil, described as national champion in technology industry which includes been established and flourished internally in the country, which has the ability to compete with world's best computer companies like Toshiba, Hp etc. Tarbes's tablets are affordable, affordable, powerful, user-friendly and thinner with latest design and technology. The company has been expanding internationally to improve their circulation and starting more assembly plants across the globe to assemble last second orders. It has a huge working force, using more than 3500 technicians working entirely on the tablet design and production. Tarbes is the owner of 55% of market share compared to its competition in its home market. In Brazil Tarbes is the only real producer with an available source Linux operating-system. It has a dedicated team of 30 technical engineers producing their Apps because of its tablets. Furthermore it has a strong syndication network which gives products to more than 1800 various sales points in the united states. It reserves a preferential space, as it is positioned as the main product in Brazilian market. They give least importance from what is happening outside the house, and focus only on producing the best products using their available resources and with high market orientation. Their products are tailor made to the client needs and needs. They have more dedicated and devoted staff, with a couple of best engineers in the market who have been with the company for years. On a complete company projected efficiency and creativity to the outside world.
Tarbes is highly market focused company. It gives products of high customer satisfaction. It takes strategic steps to comprehend the specific needs and would like of its customers. This strategy has helped Tarbes to be the no 1 in the Brazilian market for a long time. But the competition has increased internationally and new competitors are entering the marketplace with low cost products incorporating the same features which Tarbe offers. New players going into the marketplace make better change on the prevailing products, cost of raw materials products services etc. The requirements and needs of customers changes quickly. Tarbe's product starting is time consuming as it concentrate on the finest information on design. It should be fast in product launching in order to be good competitors.
In spite of its rivals offering the products with almost similar features at low cost and appealing to the consumers, Tarbes continue being focusing on their design and new product features. Even though this low end rivals had only 5 % market talk about against 55% of Tarbes, but it is a serious threat because they are continuing to appeal to more customers. Tarbes always focused to deliver products which has more customer satisfaction with ground breaking features and low cost. Tarbes continue being on its expansion trend and could control the market due to its branding and reputation it created over years. They continue to rely on the same strategy -"If they developed and released their finest work, customers will buy ". Tarbes was enjoying success in their development since 2001 to 2005, but it went down gradually. Major reason was the recession in 2007 and the access new competitors in to the market. Another reason was the product missteps that happened in 2008 and 2009. They tried to increase the reputation of their tabs brand by adding many new features. They added two variations aiming the professional market with the addition of more external features and environment market adding more accessories. . Despite the fact that there is serious improvement in the look, the operating system was underperform and not sufficient compared to their competitors. Then CEO Marques promised a fresh version of its operating system to the clients within the next year. Despite this it prolonged its domination in the tablet market sticking on their same slogan of years "Advanced Technology at a realistic price "
Even though Tarbes was the national champion in Brazil in the tablet market, and was having 55 percent market share, the merchandise was highly costed compared to competition. New competitors entering the marketplaces were offering products of the same range with 80-90% features at lower price that was appealing to more customers to them. The launching of Apple, which has more strong and reputable brand value and whose products are price competitively with Tarbe's was another threat. Unlike Tarbes, apple comes with an ecosystem of technicians developing its app because of its products which customers are able to download from iTunes. Tarbes has its team od creators to build up Apps which customers can download by paying a nominal rate. But competitors distributed a common market place for Apps. Many of the Apps in this common marketplace by competitors are not available for Tarbe's users. Furthermore this Screen and Android common market has more than 2000 coders, producing the App on the market whereas Tare team was a tiny range of 30.
Tarbes has been segregated into four divisions -Development, Sales, Marketing and development lead by six top management -CEO, CFO, CIO, COO, HR director and Lawyer. While there seemed to be a great working romantic relationship between employees, people movements was very gradual. It was very low as 2% compared to industry average of 15%. The company is not worried about the external world and don't consider criticism from competition or commentators into consideration. Company just focus on the development of the new and best products. They spend additional time in the development and production. It is a typical top down organisation where the strategy is set at the very top level and passed on to underneath level. Its more like a manufacturing plant where there is no interaction between your top and bottom level level. Lots of the software provided by the rivals were not available in Tarbe's tablets. The staff believed they are the best plus they where reluctant to accept that their position in market is affected following the missteps in the recent launches. Mature managers never listen to underneath level and never take feedbacks from the other employee. Tarbes has a fervent team of technicians who concentrate on the improvement of the current products to boost client satisfaction, new features and designs and costs. The development and release was very sluggish and it was almost thrice the time as in the past.
6. Which strategic perspective might you guide Branco to follow and why you feel this would realize a strategic turnaround?
Branco should come up with a new strategic planning as the company is still focusing on the same slogan for a long time. New strategies should be released apart from market orientation. Production costs should be decrease. Tarbe's can be used to being successful and it generally does not know how to fight. It will develop new strategies, if it wishes to keep its current market show and position. It includes a very good band recognition. It is very possible for Tarbes to hold on to its market talk about among the new competitors on the market if it works on its costs, design, launching time etc. Entry of Apple is a serious threat. It could suffer market share losses when IPad is launched. The introduction will divide market into 4 operating systems-Apple, Linux, Window and Android. Tarbes has nobody outside, for growing their app for Linux. It really is hard for outsourcing t someone to develop application in Linux and it'll raise the cost. As the rivals, Tarbes also should commence to develop its software in a common platform which will help in the reduction of cost. This can make all the applications open to Tarbes users as well. The starting time of products is very high. It ought to be reduced. New products with new features in a short span of time attract more customers. The start of the recently upgraded software should be sped up. The internal issues between the top level management and the employees should be sorted. Feedbacks from the employees, customers and opponents should be taken into account for the organisational development.