Case Analysis: Synnex International

Background After two decades of successful expansion and redefining the high-tech product distribution system, Synnex International must make a decision on where it will go next. Founding President Evans Tu has seen the firm grow from a local electronics distribution channel in Taiwan into a worldwide powerhouse in product distribution with vendors knocking on doors requesting expansion into new markets. At this point in the company's growth, Tu has the full support of the board of directors to expand into new markets or new product lines, but he knows that capital management at every step is the key to success. Should Tu move forward with the 26 logistics centers in the plans for China? Should he …show more content…

Building, acquiring and contributing to existing stores are all beneficial methods of growing the firm, but Tu must determine the right place and the right time for each move. A SWOT analysis of Synnex International will benefit President Tu in determining the next move of the corporation. The company's strengths include its ability to manage the full range of distribution channels, its worldwide network of faithful connections, and its consistent mission and values that are honored company-wide and recognized throughout the industry. Synnex has very few defined internal weaknesses, but one possible pitfall is that the high level of automation and computerized service lacks the intimate personalization that some cultures require. Even if the service is good, customers in some cultures want to feel connected to their suppliers and not as if they are another entry in the order books. Even well trained telephone operators cannot possibly spend the time to connect with customers on an emotional level, so the corporation must rely on branding and service and hope that the customers can be satisfied by that. This company has endless opportunities. The case mentions that the first time Tu campaigned to the board of directors for permission to build a logistics center, he had to make more than ten presentations to sell the idea. Now that Synnex expansion centers are flourishing around the globe, Tu has the green light to do anything he thinks is best. The company could