Pmp corporation

This report is to discuss PMP corporation accompany that manufactures petroleum meter, pump and other products for service station. They also manufacturer printers, cash drawers, computers and other related products; the company has diversified at the same time expanded internationally. Their products include: cash drowse computers, electronic reset computer related accessories pulsars’ meters ticket printers and other related products. (www. pmp-corp. com)

Company objectives

The main objectives of the company are to be a market leader in that manufacture of computer products, printers, and pump products. The short term objectives are too expand to various market segments such Africa.

Their mission statement is to provide a remanufacture products which perform sell  than the new products.

Company strategies

The main company’s strategies are to diversify products so as to meet the needs of the market in all geographical segmentation where they operate. They also have strategies of reducing costs by outsourcing business activities and stay competitive. They have invested technology such as remanufacturing so that they can behave better than new products. Technology has also assisted them through internet and possibly has online shop to sale their products. They have developed differentiation strategy that assist them in succeeding in the market.

Generic strategies

The company has adopted three generic strategies as stated by porter which include differentiation. Differentiation for the company to produce various products ranging from computer, printers registers and pumps.

They have also adopted diversification into various markets using various value chain to different markets to reduce the impacts of product differentiation.  They have taken cost leadership as another strategy have different costs and reduce cost of production this is through out sourcing.

SWOT analysis

Strengths:

1. First to launch refurbish pumps as well as other station products therefore customer confidence high

2. Low product costs – integration between subsidiaries

3. Highly experienced management and staff

4. Growth by increasing market share through acquisitions

5. Able to promote several products in one place

6. High operation margin, no risks relating to profitability

Weaknesses

1. Barriers to enter Foreign Markets

2. Licensing problems

3. Highly competitive market

4. Declining ROCE and Revenue Growth

5. Raising money from banks rather than shareholders

Opportunities

1. Growth by increasing market share through mergers and acquisitions

2. Develop new products which link to changing peoples lifestyles such as refurbished products.

3. Incorporate new technologies such as internet shop and advertising to stay ahead of the competition

4. Enter overseas markets such as china, India

5. Launch other products such as mobile telephones Telephone and lap top manucture.

6. Use celebrities in advertising the products of  the company such as 5cent, Ronaldo and many other celebrities known world wide.

Threats

1. Keeping control in family – Lack of knowledge, Investors unhappy

2. Debts going above the value of total assets

3.     Economy – Expensive borrowing

4. Expansion, Mergers and Acquisitions – could lead to failure

5. Rules and Regulations of different countries

The biggest threat PMP Corporation facing at presently is from rival companies which is offering its products and services cheaper than News Corporation and could lead to their market share dropping as well as revenue.

Problems of the company

The future of the company is still the major problem of the company as it is not clear the direction of the company taking either entering electronic devices or manufacture or refurbishing of pumps. Secondly whether it will continue under the influence of the current management.