Computron
CASE 2 Computron inc (2006)
Date: 15/05/2015
Tornike Khaduridze
History
Computron was an American firm that had, in the winter of 2002, opened a European sales office in Paris with Thomas Zimmermann as its manager. The company was the leader on the market between 2002-2005. The Computron 1000X was designed specifically for process control applications. It was actively used in chemical industry. The computers were produced with the highest quality on the market and the Computron firm was very reliable for the customers. Computron produced small, medium and large computers. Prices for small computers were up to 320000, for medium from 320000 up to 4 million and for the big ones from 4 million to 24 million. During its first six months the European sales office did only about $4,400,000 worth of business. In the 2005-2006 fiscal year, however, sales increased sharply, totaling $20,000,000 for the year Computron’s total worldwide sales that year were roughly $176,000,000. Europe was the main market for the Computron. Germany was the one of the biggest customer country, accounted 24 % of total sales in Europe. The prices for computers were higher than other brands offered on the market, but quality of the Computron was very high and it let them to sell their product with the higher price. Because the computers were assembled and produced in USA the transportation cost was added directly to the price. The German tariff on computers of the type was 17½% of the U.S. sales price. Because of high tariffs Computron decided to build the plant factory in Germany. It would lower the German tariffs by 15 % which is crucial for the market. The new plant was to occupy 10,000 square feet and employ 20 to 30 people in the first year. Its initial yearly overhead was expected to be approximately $1,200,000. As of July 2006 the European sales
Date: 15/05/2015
Tornike Khaduridze
History
Computron was an American firm that had, in the winter of 2002, opened a European sales office in Paris with Thomas Zimmermann as its manager. The company was the leader on the market between 2002-2005. The Computron 1000X was designed specifically for process control applications. It was actively used in chemical industry. The computers were produced with the highest quality on the market and the Computron firm was very reliable for the customers. Computron produced small, medium and large computers. Prices for small computers were up to 320000, for medium from 320000 up to 4 million and for the big ones from 4 million to 24 million. During its first six months the European sales office did only about $4,400,000 worth of business. In the 2005-2006 fiscal year, however, sales increased sharply, totaling $20,000,000 for the year Computron’s total worldwide sales that year were roughly $176,000,000. Europe was the main market for the Computron. Germany was the one of the biggest customer country, accounted 24 % of total sales in Europe. The prices for computers were higher than other brands offered on the market, but quality of the Computron was very high and it let them to sell their product with the higher price. Because the computers were assembled and produced in USA the transportation cost was added directly to the price. The German tariff on computers of the type was 17½% of the U.S. sales price. Because of high tariffs Computron decided to build the plant factory in Germany. It would lower the German tariffs by 15 % which is crucial for the market. The new plant was to occupy 10,000 square feet and employ 20 to 30 people in the first year. Its initial yearly overhead was expected to be approximately $1,200,000. As of July 2006 the European sales