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Introduction
In the international market of the technology sector, there is very high-level competition over the market competitors. Strategic management is a framework to achieve success over the market competitors by delivering and keeping satisfaction and promises made to the clients and stakeholders. The up gradation or improvement of the strategy helps to change the essence of the DMX Technology. As DMX Technologies is a leading information and technology provider that provides a range of digital media and software solutions. The company focus on providing their customers best quality product and they treat every customer as a VIP. The business plan of DMX Technology renewed its path of exploring the global market by adding value to its target market segments. DMX Technologies is no., 1 provider of IT and computer as wholesaler and distributor it can be used in workplace and home. The company is established in 2018 since then growing every day.
1. Nature of Business Ventures
1.1 Overview of the business
Malaysia is one of the leading countries in developing itself in terms of connectivity, broadband, “smart automation”, and “digital infrastructure” (Al-Harethi & Al-Maamari, 2018). The manufacturing sector in Malaysia is considered to be the highest contributor to the total spending on information and communications Technology. Being a part of the Technology industry, DMX Technology is selling their products that are suitable for IT industry, home or work place. At present the company is having more than 1000 dealers from “east to west Malaysia” (Dmxtech, 2022).
1.1.1 Objectives
Providing quality products and services is the main objective to hold its ground in the global market for DMX Technology. Thus, they have become the No. 1 distributor of Information Technology (IT) and accessories of computers according to the needs of the population (Dmxtech, 2022).
1.1.2 Mission
DMX Technology is helping the country to become the leading contributor to the technology industry of the country (Dmxtech, 2022). They are selling products all over the country and levering their product to the population to enhance their work efficiency.
1.1.3 Keys to Success
Quality products and a high customer satisfaction rate are the keys to success that provide a competitive advantage to the company.
1.1.4. Organizational structure
The company follows the hierarchical structure and complies with the top-down approach. Apart from that, it is the best IT Technology provider that is known for its friendly customer care services (Dmxtech, 2022).
1.2 Description of the product
DMX Technology is a leading IT company in Malaysia that provides its products and services to the population. IT works are as of now has become an essential part of our life. Technology is around us everywhere and we are lined in the ring of technology (Chin et al., 2014). Best quality products are provided for daily use. Products such as gaming consoles, power cables, HDMI cables, CPU, AV cables, heat sink fans, inkjet printers, barcode scanners, CPU cases and more3 for daily life usage. They provide a customer-friendly service and the bond between the company and the customers have become strengthened.
2. Analysis of the environment
2.1 Potential and demand for products and services
The external environment of the business is evaluated through “Porter’s Five Forces” structure (Nadkarni & Prügl., 2021). As the world is turning on technologies there is a very high demand for technologies and their products. Malaysia is still improving in terms of technology. As a Malaysian-based technology company the company is trying to provide better services to the customers and better quality products, there is an increasing need for technological products every day, and more companies are opening they need computers to work. As the company is now they are still trying to provide better service to their customers. The company is mainly focusing on making computers and IT gadgets.
Bargaining Power of Supplier
In terms of the bargaining power of the supplier, the business provider has a low strength. In the global market, there are a lot of popular brands and they have a large customer base. Rapid expansion is a continuous process for these popular brands (Mustaffa et al., 2022). On the other hand, the suppliers already have a positive image and guaranteed earnings set with the popular brand, therefore, they would not collaborate with the mentioned brand.
Bargaining Power of Customer
The bargaining power of the consumer is both low and high according to the location. For the global market, there are a very large number of gamers and thus the switching cost for the consumers will be lower for the company.
Threats of New Entrants
Threats of the new entrants in the competitive market are a must probability. Global market competition is a major factor for a company to deal with. The mentioned company does face this challenge and the threat is very high (Zakaria et al. 2022).
Rivalries Among Competitors
IT sectors have a huge amount of work to do every day and it needs to be done with an efficient service. There are a lot of competitors across the country. Gradually they tried to develop their business and serve products with better quality (Haniffa et al., 2022). However, DMX Technologies have managed to overcome that barrier or obstacle to make their ground stronger than before.
Threats of Substitutes
This factor seems to be one of the riskiest factors for the company. Substitutional products and either company are trying to build their stage in the market across the country (Ya’acob, et al. 2022). It may harm their business strategy and this can affect them in terms of their business.
2.2 Internal company structure and process that will support sales
Internal environment of the business is examined through the “VRIO” framework. It helps to assess the ability, resources, and competitive advantage of the company (Baharudin et al., 2021). It helps in assessing the external factors for the company.
Resources | Value | Rarity / Uniqueness | Imitability | Organization | Competitive Advantage |
Business Model | Yes | No | Yes | Yes | Yes |
Global Market Presence | Yes | No | Yes | Yes | Yes |
Brand popularity | Yes | No | No | Yes | Yes |
Innovation | Yes | Yes | Yes | Yes | Yes |
Table 1: Internal competencies analysed through the VRIO framework
(Source: Baharudin et al., 2021)
In terms of the global business presence, grand popularity, innovations on their products, and the value of their products, DMX Technologies do have a competitive market advantage in the international market. DMX Technology achieved a competitive parity because of good internal competencies. They quickly realized and can imitate the resource without much problems. DMX Technology have gained a long-term competitive advantage in the international market as they have the brand popularity and global market presence.
Figure 2: Sales report of DMX Technologies
(Source: Baharudin et al., 2021)
Exquisite internal competencies the sales report of the company shows a positive growth and at the same time global market presence or brand popularity, there is an increase of annual revenue 18 M MYR in the last fiscal (Baharudin et al., 2021).
3. SWOT analysis compared to current competitors
3.1 Unique selling point of the company
In the expansion of their business for the international market, DMX Technology has evolved its business strategies and worked on them to get the place there (Veerankutty et al. 2018). Its market share across the country is very high in comparison with other companies and that too created a unique selling point for the company. Service and products with high quality have reached the satisfaction level of the consumers (Mustaffa et al., 2022). They have strong business models that have helped them to hold their ground in the international market. Quality products and durability for long-term use are beneficial factors for them to reach the satisfaction level of the customers.
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● Conducting business in market of Malysia for a long time and having good response in customers ● Number of customers is low due to pandemic | ● 1.2 million customers in Malaysian market (Hfe.co.uk, 2021) ● Online gaming process being helpful in retaining customers |
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● Good response in domestic market ● Losing ground due to the impact of Covid-19 in business sectors. | ● Low rate of customers growth in Malaysia after impact of Covid-19 ● Number of market competitors in increasing competition in market |
Table 3: BCG Matrix Table
Based on analysis of the BCG matrix market penetration of PC ATX GAMING POWER SUPPLY will be easier in this situation. There is a large number of customers in the Malaysian market is the thing that makes the Malaysian market attractive to the company.
3.2 Company’s competitive advantage
Competitive advantage refers to factors that allow or tell a company to produce a product and to provide service in better and more cheaply than its rivals; these factors allow the company to increase sales and customers number in comparison to their rivals. Here for DMX Technology, they can apply this method, as most of the customers want products that are cheap and produce better quality products. As a new they can increase the number of their customers. Their product must be cheap, better quality, and unique than their competitors. This advantage theory can be divided into two parts, competitive and comparative. Competitive advantage theory is a comparison with a company’s competitors and comparative advantage is between two similar products from different companies.
3.2.1 Competitor Analysis
| Nexcom | QSAN | Intellisoft Technologies |
Unique product | 75% | 90% | 80% |
Annual sales | $195M | $29M | $24.5M |
Market share | 54% | 67% | 62% |
Competitive advantage | Very High | High | High |
Table 2: Competitor analysis of DMX Technology
(Source: Selig et al., 2018)
3.2.2 Supplier support
A large customer base for a company is the most important factor because it helps them to hold up their place and also improve the growth rate in the global market share. The strengths of the company have made the path very clear for them in Malaysia for expanding their business strategy (Salim& Sulaiman 2021). A lack of financial and technical resources for a technology industry can harm them in the expansion of their business (Haniffa et al., 2022). The company lacks these two factors financial and technical resources. Thus, they may fall behind in the global market, although they have achieved the leading place in the country.
3.2.3 Internal strength
Strengths | ● The company has a strong geographical reach, strong brand identity and customer base around 22.8% market share. ● Continuous product development and offering complete satisfaction for consumer from sales to after sales. ● Strong Business Models (Mugo, 2020) ● Quality checked product |
Weaknesses | ● Lack of financial and technical support ● Lack of innovations ● Inefficient supply chain |
Opportunities | ● High demands in the industry and consumer base within 20-35 years |
Threats | ● Competition with “Nexcom”, “QSAN”, “Intellisoft Technologies” in the international market ● Changing demands in the electronics industry |
Table 3: SWOT analysis of DMX Technologies
(Source: Lowet al., 2020)
In terms of the SWOT analysis of the DMX Technologies, we can observe DMX Technology has evolved their business plan is a very strategic manner. Their product demand is increasing very high because of the quality and the services provided to their customers. A large customer’s base is helping them in their economical growth. Global market competitors are influencing them to improve their business strategies and bringing newer ideas and concepts in their products.
3.2.4 Strategic Partnership
These factors must be looked into for improvement in the strategic operation. Innovations are again a factor that may affect the company’s growth. In partnership with “LogRythm”, DMX enables their consumers to respond with them. In terms of the logistic partners, DMX Technology collaborated with “D2C” businesses. Innovations help to attract more people to the company and thus help to build a larger customer base. Lack of innovation for DMX may harm them in terms of business operations (Haniffaet al, 2022). They must introduce an innovative approach to their products and attract more people to build a strong customer base. It can be a very effective impact on the economical aspect of the company. The quality of their product is a positive advantage for them because it is helping them to increase the demand for their products. Excessive demands encourage them to build more products as per the customer’s requirements. Some threats are also observed for the company because there are a lot of other companies in the market competing with them (Hanayshaet al., 2022). Companies such as “Nexcom”, “QSAN”, and “Intellisoft Technologies” are present in the market and provide their services throughout the country to compete with DMX. In terms of the global market, many popular companies affect the expansion of their global market (Foong et al. 2017).
3.3 Timeline
4. Intended Business Strategy
4.1 Approached marketing strategy
Marketing strategies (4P):
The key factor for a company’s business strategy lies in this model i.e. “4P” model. They are product, place, price and promotion. It is a mix of marketing strategical factors when marketing a product (Fadhil et al. 2021). The survey of the needs of the consumers, the problems of meeting those wants, how the product is accepted by the people, and how it is holding its position in the market.
- Product: The Company is willing to introduce “HyperX QuadCast” that can help to promote the gaming experience. The features and benefits of the product must be conveyed to the consumers so that they can be able to understand the quality and efficiency of the product (Mustaffa et al., 2022). It will help DMX to have a larger customer base at the time of mix marketing strategy.
- Price: DMX must set the price of the product after it is ready. They must manufacture their products with high end quality and more high-quality service must be introduced to the consumers is that it can influence the growth of the company. In terms of pricing, they should introduce low pricing strategy to attract the attention of the customers. Sometimes there are other companies selling their product at a low price but with the same quality, there lies the concern of the low pricing strategy (Mustaffa et al., 2022). They will require assessing customer needs and interests and then identifying product development strategy. A unique sales process can be introduced to help the buyers to understand the benefits and features of the product (Chin et al. 2021). There is a negative impact of it because it gives an impression that the product might be not that much desirable as it was before.
- Promotion: Mix marketing strategies include the strategy of promotion of a product. 4P model’s ‘product’ strategy is also identical to this. In promotion strategy, they must introduce advertisements, special offers, and relations with the public to expand their business in the market (Mugo, 2020). In the competitive market, they must focus on the advertisement of their products throughout the population by developing a “24-Hour on-Site Service-365 Days a Year with No Extra Charges” so that their service can be differentiated from the others. It can be considered as the communicative strategy for the company that is the relations with the public and understanding with them through communication are applied here.
Place: It is the strategy of supplying the product to the right place to gain the customer. They must survey the areas where their product demand is very high or above average. This can help them to apply this strategy and gain their customers (Alsayegh et al. 2020). It will act as a very effective strategic mix of marketing for the company. Nowadays., gaming has become a very popular among the young generation. And some fellow chose it by their profession. DMX must target those areas and can be very helpful for that targeted customer.
Figure 1: Mix Marketing Strategy
(Source: Hanaysha&Alzoubi, 2022)
4.2 Approached operational strategies (5M)
This model of business strategy can be very helpful for the company because it helps in picking up internal elements of the marketing plan and makes it successful.
- Manpower: This strategy can help DMX in terms of its business expansion. Manpower is an effective asset for the company as it can help at the time of product advertisement and communication campaigns.
- Materials: This factor helps in the supply chain of the company in both its current and future marketing strategies (Baharudin et al., 2021). The supply chain was valued very much, and the evaluation of the specific materials used at the time of production of products of DMX is the main focus of the marketing strategies.
- Machinery: Production machinery is an important aspect. Advanced machinery for the production strategy can be very impactful for the DMX Technology in the expansion of their business in the international market.
- Minutes: It is the time factor for the company and it is a valuable asset for the company. The planning of the marketing process is very effective for the company(Al-Harethi & Al-Maamari, 2018).
- Money: This strategic element will help the company to evaluate and review its current projects and activities for the future and also the present marketing strategies.
5. Justifications to support the intended strategy
Every business or company wants to succeed in the global market to grow its economic base. Mix marketing strategies and operational strategies are very important methods to reach people and expand the business.
5.1 Reason for applying these strategies
The 4P is a model that helps the company to introduce its products to the people and thus it helps them to build its place in the market. Listing up the price may give the company a positive impact as it will help the company to grab the audience in the market. Promotion of the products helps to build better communication and understanding with the consumers (Baharudin et al. 2021). A survey of a place can help the company to reach the audience very easily. According to the requirements of the people, the company can provide the products. The strategies discussed above help the company to define the roadmap of its business (Fadhil et al. 2021). The four factors of the mixed marketing strategy may help the company to test its current marketing strategy.
DMX can be helped in identifying their products and customer service and can analyze what they want to do for improvement. Assessment of these strategies can also be helpful for them to understand the customer’s needs (Al-Harethi & Al-Maamari, 2018). Use of their products satisfying their consumers or not, whether the pricing of the products is reasonable for the customers or not, and whether the audiences are targeted properly and reached by communication strategies, can be assessed by these strategies(Mugo, 2020). Additionally, the 5M strategy can help the company to understand the needs of the customers and find places for improvements. The internal environment of DMX can be influenced by these operational strategies.
5.2 Key Success Factors (KSF)
Key success factors (KSF) or competitive factors are very effective for a company’s prosperity. DMX Technologies implemented strategies for their business growth in the international market and they have benefitted after the implementation of these strategies. In terms of manufacturing, distribution, marketing, and capability-related success, there are some key success factors for the company (Mustaffa et al., 2022). Low-cost design of the products, production as per the customer requirements, and the productivity level of the labour are the key success factors related to manufacturing.
DMX can grow their business and reach consumers through its distribution method where it can enlarge its network of wholesale dealers. Friendly customer service, perfect technical assistance, providing the customers with their products in time and strategy of clever advertisement are the key success factors of marketing (Baharudin et al., 2021). Capabilities regarding short-time delivery, supply chain management, new ideas on their products, and global distribution are the key success factors.
Conclusion
It can be concluded that “Strategic Management and Corporate Transformation” is a very important aspect for the company to enlarge their business field and prosper in the international market. DMX has achieved their valuable place in the global market. The strategies provided them new ways to develop and capture value and the revenue. Modified key success factors, helped them a lot in their business growth. Analysing the strategies, it is observed that DMX Technologies enhanced the service regarding their customers’ expectation and behavior and also influenced the incensement of the speed of the business model evolution.
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Website
Dmxtech, (2022). ATX COMPUTER CASE YEAR 2021 LATEST SERIESRetrieved on: 13th September, 2022, retrieved on: https://www.dmxtech.com.my/