Analysis of Teradyne based on the five strategic principles
The management of the Teradyne Company is looking for the best strategies to ensure that their products and services are optimized. Considering the first strategy to combat the threat of entry of new companies that offer the same products as Teradyne, it is important to make wise decisions. The new entries of companies into the market can threaten the performance of Teradyne as a company.
This is because they increase the market share, which will in turn put pressure on the prices and the value, which are the necessities to match. For example Teradyne were advised to produce those goods that would be needed by the current needs of the customer. Second strategy is the bargaining power of the suppliers.
Teradyne needs to evaluate the products that they receive from the suppliers. Having strong suppliers helps the company to capture more benefits for itself. This makes them more powerful as they have the opportunity to charge more or increase the cost for instance the cyclical variability of sales and the need of having fixed engineering cost made Teradyne to understand the achievement of the best balance between long-term goals and the short-term goals.
The third strategy is the knowledge and identifying the threat of substitutes. Substitutes in the same industry always perform similar functions, but they use different means. At times, the threat of a substitute is felt when the substitute replaces the buyers industry. Strategists are supposed to change their industry and make them more attractive such as producing more advanced substitutes for their products.
In addition, rivalry amongst the existing competitors of Teradyne takes many forms, which include reduction, of prices and discounts, introduction of new products and advertising campaigns. The intensity of rivalry can be significantly felt if the competitors are numerous. Lastly, the power of buyers also has a tremendous impact on the strategic performance of Teradyne.
Powerful customers are essential if their negotiating leverage is relative compared to the other competing industries, which in this case are the Japanese who produce better than Teradyne. There may be distinct groups of customers who differ in their bargaining power.
Teradyne: SWOT analysis
The objective of the new business was to develop a new grade of a new breed of industrial grade test equipment, which was designed and built to be highly reliable and easy to use. One of the successes of Teradyne was that all the competitors made transistor test equipment, and these transistors were more complex and difficult to test than the diodes.
Teradyne incorporated things such as vertical marketing as well as recruiting of new staff to enhance the performance of the company. Reintegration was the strategic matter for this company. Through this, the customers will be in a position to determine how fast the new products were going to be accepted in the market. In relation to Aurora’s, there is a need to penetrate into the new markets and get new customers. One threat to the Teradyne Company is the competition from other companies.
The major problem that Teradyne is facing is the threat of competition. Several competitors have the CMOS testers, which are highly recommended, as it is a new technology, which made them, stand out to be better that Teradyne. The engineers have to set up new partnerships, which are the key to getting details from the customers to prevent competition.
The other important that the company should do is crucial is to come up with ways that will help in development of product policy, which will help in building market segments which have low penetration. It should be able to work closely with its customers, in ensuring that they keep their customers. This includes the development of an economic model that has to be worked out and it should be one that will ensure that the prices of the products are lowered. This way it will keep the company on the profitability margin.