Case Discussion Question Essay Example | Topics and Well Written Essays - 3000 words

Case Discussion Question - Essay ExampleProviding state of the art technology at a competitory terms and with a high value support system, Altera was able to steadily increase its revenues to staggering $1.4 billion by the first quarter of year 2000. Thereafter, the gentleman scenario, regarding the technology boom, took a downward plunge that threw the whole technology persistence into a spin.The year 2000 onwards, saw an unexpected decline in the demand for the sophisticated goods that completely wiped out the small players and left the big manufacturing companies with huge inventory that had far too few customers. Chipmakers and PC companies suddenly found themselves with a flood of inventory and capacity. Networking and telecom equipment makers were particularly hard hit Cisco, more irrationally exuberant than most, was forced to write off a staggering $2.25 billion worthy of gear (Teach, 2001). Others also followed suit with huge quantity of unsalable inventory. Altera Co rporation too faced the repercussion of the time and had to declare goods worth $115 million as unsalable. One can gauge the extent of loss when Nathan Sarkisian, senior vice president of the company said Ive been in the chip industry for 20 years and I have never seen anything like this (article).The reason for this trend may be attributed to a wide variety of causes but the briny being that with the large number of electronics manufacturers and suppliers, it became difficult for the customers and distributors to identify who owns which surplus parts. While at the same time, the grey markets in the networking equipments in the new uphill economies took a new dimension that threatened the whole industries. At this very time, the PC companies became broiled in an unhealthy cut throat competition of waging price wars.The deteriorating market conditions demanded some hard hitting formulae to restrict the decline while at the same time, create effective strategy to counter the menace o f such(prenominal)