Arrow Electronics Essay

1088 Words5 Pages
Company Arrow Electronics is a distributor of electronic parts, including semiconductors and passive components. It was founded in 1935 and has reached number one position among electronics distributors by 1992. Problem The question is if Arrow/Schweber should accept the offer from Express Inc. and sell their products via this internet-based trading system. In the best case A/S could gain transactional customers, who just want to buy a product and have no need for special service. In the worst case A/S could lose relationship customers, because the possibility of getting better prices on the internet platform is higher, since there are more competitors that can be compared. Customer Relationship Although relationship customers also use the BAS system, it is more valuable for transactional customers. Since transactional customers emphasize more on quick delivery and low prices, but less on relationships, A/S focuses its efforts with the BAS system on providing the transactional customers with these values. In order to satisfy the needs of the relationship customers either, A/S pursues the strategy of the VA system. In this system orders are facilitated by field sales representatives (FSR), who visit the customers’ design engineers to learn about current projects and explain and promote new products being introduced by Arrow’s suppliers. Also FSRs establish relationships with customers. That contradicts with the BAS system, where sales and marketing representatives (SMR) act passively by handling daily phone calls from customers checking delivery, availability, and price levels. The values provided for the relationship customers are the provision of credit and short delivery lead times, the price performance ratio, and the best-in-class support. Furthermore, A/S offers to be a steady partner, that means the continuous availability of products is ensured
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