TEKCOM Corporation: Driving Future Growth
(6 pages of text)
TEKCOM Corporation (TEKCOM) was one of the largest exporters of film-faced plywood (FFP) in Vietnam. The company experienced double-digit growth in its FFP trading business from 2005 to 2011. In 2012, TEKCOM ventured into FFP manufacturing. However, after building strong brand equity in both local and foreign markets as a mid-range FFP producer, TEKCOM faced a major constraint to its growth ambition. Veneer, a key raw material for making FFP, was in short supply in Vietnam. Sourcing veneer from overseas suppliers was expensive. Furthermore, the domestic FFP market was becoming increasingly competitive. An escalation in the company’s orders backlog, due to a severe shortage in veneer, led TEKCOM’s chief executive officer to review his company’s business model and strategy to sustain growth. In June 2017, TEKCOM was considering various options to address the supply shortage and the prospect of market expansion with new products. However, there were major risks associated with all available options.
This case is suitable for undergraduate or graduates course in operations management or supply chain management. Specifically, it can be used in courses that cover integration concepts and topics such as supply chain management, operations, strategy, and sourcing. After completion of this case, students will be able to
- understand the importance of supply chain and operations factors in analysing and formulating a corporate strategy;
- use a holistic approach to identify and formulate strategic options by integrating multiple elements, including supply chains, marketing, production, and sourcing;
- understand how exploitation and exploration can be twin considerations in strategic analysis;
- learn how organizational culture can be a key determinant for embarking on new strategic initiatives, particularly toward operational changes;
- understand the complexity of global supply chains and how they impact strategy, marketing, sourcing, and operations decisions; and
- perform a logistical analysis on a make-versus-buy decision.
Vietnam, Medium, 2017
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