Company Introduction
In April 200X, Zippy Computer, Inc., merged with Binger International, Ltd. The new entity was named Zinger Electronics, Inc. and began trading on the NASDAQ. Zinger Electronics, Inc., produces a variety of high-tech goods and services—computers and servers, Internet services, Web hosting, and business-to-business e-commerce applications. Their award-winning computers are sold under the ZingPC brand to business, government, education, and consumer markets.
The ZingPC division designs and manufactures a broad range of computer products that ranks among the industry leaders in technology, innovation, price, and computing performance. These award-winning products are marketed under the following lines: Zinger Millennia desktop computers, Zinger TransPort notebook computers, Zinger ClientPro corporate computers, and HP NetServer servers. These product lines are manufactured exclusively at the company’s facilities in Cheyenne, Wyoming. ZingPC products can be purchased directly from the company’s Web site http://www.ZingPC. com, by calling a toll-free 800 telephone number, through company field sales representatives, and through leading national retailers.
Early Successes and Challenges
As a new organization, ZingPC adopted a product-focused strategy. Its goal was to provide the fastest and most powerful PC on the market. ZingPC built a 216,000- square-foot facility in Laramie, Wyoming (more than doubling its original capacity), and dedicated a large portion of this multifunctional facility (120,000 square feet) to PC assembly. The company quickly increased production levels of the powerful PCs and pushed them into the marketplace in anticipation of a dramatic increase in sales volume and revenue.
The company experienced many early successes, as evidenced by strong sales and high levels of market acceptance. ZingPC finished fiscal 200X with $1 billion in net sales. The brand name was well respected, and the company appeared to be poised for