RaijuArrowElectronicsdiscussion.ppt

Arrow Electronics, Inc A Case Study by Jasveen Samra Mukund Narasimhan Noppawun Sopee Raiju Neelamkavil Wei Zou Founded in 1935 with an initial focus on selling radio equipments and gradually positioned itself into a broad-line distributor of electronic parts, including semiconductors and passive components by aggressive acquisitions. In 1992, it reached #1 position among electronics competitors after a shaky regrouping that coincided with economic recession. With annual sales of $16B, Arrow’s North American operations headquartered at Melville, NY serves as a supply channel partner for approximately 700 suppliers and 140,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of more than 300 locations in 50 countries and territories. Competitors Avnet Inc (1996) trailed behind arrow by 20% in sales even with growth of 14% as compared to arrow’s 10% Foreign entrants Rabb Karcher and Future Electronics Long time rivals Pioneer-Standard, Wyle Marshall Industries Overview Operations Structure Six Regional VP 39 Branch/General Managers Field Sales Representatives Inside Sales Representatives Product Managers Field Application Engineers Administrative Personnel Additional Managers Operation Structure based on product strategy Zeus Electronics – semiconductors to military and aerospace customers Capstone Electronics – passive components Anthem Electronics and Arrow/Schweber– semiconductors to industrial customers Gates/Arrow Distribution – computer systems, peripherals software These operating groups being individually responsible for asset materials management and PL Arrow/Schweber Electronics Organization Structure subsidiary of Arrow Electronics Arrow’s largest working group with sales of around $2b Headed by Salsgiver, who pushed A/S towards higher level of technological expertise through technical certification of its field sales representatives and dedicated investments in produ