Business 10th Edition by Ferrell,Geoffrey Hirt,Linda Ferrell

Exercise 1

Making Infinity Computers Competitive
Infinity Computers Inc. produces notebook computers, which it sells through direct mail catalog companies under the Infinity name and in some retail computer stores under their private brand names. Infinity's products are not significantly different from competitors', nor do they have extra product- enhancing features, although they are very price competitive. The strength of the company has been its CEO and president, George Anderson, and a highly motivated, loyal workforce. The firm's weakness is having too many employees and too great a reliance on one product. The firm switched to computers with the Intel Core i5 processors after it saw a decline in its netbook computer sales.
Recognizing that the strategies that initially made the firm successful are no longer working effectively, Anderson wants to reorganize the company to make it more responsive and competitive and to cut costs. The threat of new technological developments and current competitive conditions could eliminate Infinity.
Evaluate the opportunities for Infinity, including using its current strategy, and propose alternative strategies.