Raymark Technologies Inc. Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Introduction

This case study is about the Raymark Technologies In cooperation and Sentor. Raymark was founded in 1976 by Steve Thomas. The company used to manufacture products for a wide range of applications as a diverse as semiconductor manufacturing, airline baggage handling, integrated building control. Retail point-of-sale terminals, blood analysis machines and industrial process control for a variety of industries including food processing, brewing and hazardous chemical disposal. The influence of Raymark is to developed products able to exchange of information between computers and direct machines. The other company in the case study was Sentor. Sentor was a biggest firm with a $1.6 billion sales in 1994. The company generates 30% of its sales revenue from export of the products. Previously Sentor used to manufacture electric motor and electric motor parts. In 1994, the company diversify itself and twist its business operation to and started to offer specialized control and automation expertise. The company started to offer more than 250,000 control products and variations.

Problem Statement

Relationship of Raymark and Sentor is on survivor stage and therefore Raymark have to evaluate whether the current structure of the partnership with Sentor Equipment was in the best long-term interest of the company or not. The founder of the company was also thinking to restructure the ten-year-old agreement between Sentor and Raymark.

“Raymark is like a minnow swimming around a whale. One day, the whale will flip its tail and quash the minnow”.

Statement of Sentor

The statement of Sentor for Raymark means that Raymark is the weaker company and it’s relied on the big giant Sentor, and the one day that giant will make it out from the market or would force it to switch the business. The statement of VP, Sentor was unethical and incorrect as Raymark is not that much weak company that can easily go drowning by the giant. Raymark is the company that used to produce hardware and software interference for industrial control equipment. The company was started by 15 employees, and now the company stands to 425 employees and sales of the company is almost $ 50 million in 1993.

SWOT Analysis

Opportunities

Raymark Company has the great market opportunity for its products production. The traditional industrial mechanism is moves to the new generation technology. Traditional control market products have been replaced by the electronics and computer based controls using operator interference.

Raymark was not the startup company, and now the company stands on the growth position in the market. The competitors of the company are big giants that can make the market more competent and, therefore, this action would force Raymark to switch the business because of highly competitor environment.

Threats

The competitors of both companies is the sensitive threat for companies and the market is highly competitive as well.

Strength

Raymark can manufacture new operator interference technology in-house economically whereas Sentor is the market leader of industrial equipment.

Weakness

The conflicts among the companies is the most sensitive weakness for the future growth of companies.

Competitive Analysis

The largest competitive companies of Raymark included Allen-Bradley, Sentor, Texas Instrument and Eaton. The market of hardware and software interference for industrial control equipment was highly competitive and highly capital intensive and, therefore, the company with large investment can only attain the economy of scale. The competitor companies of Raymark had invested the large amount in the business development of in-house computer expertise.

Which could make Raymark to switch its business because the market is highly sensitive to the product cost, therefore, big giants can easily offer low cost as they can easily achieve economy of scale as they had invested a large amount in the business. Whereas Raymark could not offer low price product as compared to the competitors because its economy of scale is not achieved effectively.

Additional there is a highly competitive environment in other countries except United States. Therefore, this symptom shows the inadequacy of Raymark profitability and its future growth. By the analysis of Raymark performance after and before partnership shows that Raymark is much more relied on Sentor. As before Partnership agreement, the sales of the company is less than $1 million per year. Whereas after the partnership agreement between Raymark and Sentor in 1980’s, it is seen that Raymark had drastically moved toward the growth and attained more than 100% sales growth after the partnership that clearly shows the dependence of Raymark on Sentor.........................

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