Case Analysis

BoldFlash: Cross-Functional Challenges in the Mobile Division

Table of Content Introduction …………………………………………………………….2 Situational Analysis …………………………………………………….3 Problem Identification …………………………………………….........5 Alternative Strategies …………………………………………….........5 Implementation Plan …………………………………………….........5


Introduction The case of BoldFlash was published by Harvard Business Review in May 31, 2012. The time duration of the company discussed in this case is from 1982 to 2012. In this case study, Roger Cahill has been acting as the Vice President of mobile division for less than a year. Boldflash (previously known as BoldDisk) founded by two computer science professors in 1982 in Waltham Massachussets. Key players are Dr. Roger Cahill (Vice Presedent), Kevin Cheng (Director Manufacturing), Karl Melzer (Director Product Development), Kavita Patel (Director Marketing), Chip Bryant (Director Sales). The key issue in this case study is to strategically manage the BoldFlash Mobile Division as well as go for increasing growth.

Situational Analysis BoldFlash was founded by two scientific professors in Waltham in 1982. The company produces

flash memory components for electronic devices like floppy disks, mp3 players, and smartphones for original equipment manufacturers (OEM) and direct to consumer markets. Currently the growth rate and market share is going down to various problems within the organization as well as due to macroeconomic issues. As Dr. Roger Cahill became the Vice


President, he try to develop and introduce newer NAND flash technology, resolve the internal issue as well as cope up the tablet miss to try to remain competitive. Corporate level strategy: 

BoldFlash Mobile Division has the strategy to increase the growth rate and market share by focusing on customer needs, product development, and cost reduction for price control.

Business level strategy:  

BoldFlash is going towards intensive strategy for new product development. Vice President focuses on high density NAND flash memory technology. BoldFlash is also focusing on market development by considering tablet miss.

Functional level strategy: 

Functional level strategies are found inappropriate as sales department doesn’t consulted with other functions while making proposals. Communication gap, low moral are the possible causes for this problem. Marketing department has been unable to find customers for their products developed by the product development process.

Poster’s Five Forces Model Bargaining Power of Buyers: The bargaining power of buyers has increased due to high density NAND flash memory technology as one customer alone consuming one third of the market for newer flash memory technology.

SWOT Analysis


Strength

Weaknesses



High quality product.



Highly scientific PHD staff product development department.



Research and product development not as per customer needs and product improvement.



Corporate culture where employees feel isolated and there is communication gap b/w the division functions.



High product cost

in

 High product price Threats

Opportunities Make storage devices for tablets.

Competitors and new entrants can get market share because of tablet miss, high density NAND technology, low customer satisfaction level, high prices and higher cost of production.

Problem Identification & Opportunities


  

 



 

Conflicts and communication gap between the department functions. BoldFlash product development did not always align with the customer needs. Sales department made proposals and sold products at any price they could in order to meet their revenue without considering the production capacity as well as without communication with the other functional departments. BoldFlash researched for its own sake rather than to improve product s or meet new customer needs and faulted a corporate culture that was not always focused on results. They developed customized chips for mobile phone market customers while completely missing critical market in storage devices used for tablets. Handing its competitors an advantage in a critical growth market. Low growth rate with high prices and high production cost led the company to disastrous position. BoldFlash has to focus on high density NAND flash memory technology. They have to consider the tablet miss in order to be competitive.

Alternative Strategies Outsourcing strategy: BoldFlash should outsource the manufacturing of the flash memory chips to those countries where they can minimize their cost. So that they can focus on their competitive advantage which is research and development. Diversification strategy: BoldFlash can diversify by producing other types of storage devices rather than flash memory storage device.

Implementation Plan BoldFlash should outsource the manufacturing to India because of lower labor rate and higher skilled labor. They have to make supply chain strategies for timely deliveries. They have make new suppliers in India located near to their manufacturing plants. They have develop a quality control division in India to monitor the quality of the product.

Case Analysis

Recommend Documents