Dynacorp Case Study

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The Problem

Dynacorp has been a prominent player in the personal computer industry since 1998 for its easy-to-use office computers, but has recently experienced moderate losses in personal computer sales due to the current boom in the business computer market. In regards to this, Dynacorp has hired Riley McMann (formerly of Corpsoft) as the new CFO, who has been a major supporter of the business computer boom and wishes to have the company expand its operations into this rapidly expanding market. These changes have irked current Dynacorp CEO and founder James O’Brien who has been hesitant to move into the business computer market due to concerns that it will cannibalize their existing line of personal computers and may alter Dynacorp’s identity …show more content…

While we still wish to remain in the production of personal computers, we have determined that we would need to dedicate 25% of our current production efforts to the marketing and manufacturing of our new line of business computers. Since these new computers have similar parts as our current line of personal computers, it will be easier on our production line workers who are already familiar with our existing hardware. In regards to this, we have decided to not enter the field of tablet computers as we are uncertain of their long-term success and would require additional factory worker assembly training. The launch of our new Dynacorp business computers will roughly take about a year to fully complete as we plan on spending 3-4 months each in the areas of conducting market research, product design, manufacturing and product evaluation. We also plan on marketing this product towards our current personal computer user base by offering them a loyalty discount for our new line of computers, as well as towards smaller businesses who may lack the funds to purchase top-line models. We also plan to use this initial launch as a prototype for future models depending on any changes in market demand or responses from our …show more content…

Since the business computing market is projected to triple within the coming decade, we have decided to capitalize on this trend by conveying the same easy-to-use hardware which made our personal computers an industry staple into this expanding market. To deliver this new line of computers to the market, we plan on dedicating 25% of our production efforts to this new enterprise while we will continue to produce our existing personal computers. This is will allow us enough capital to invest in the manufacturing and marketing of these computers as this undertaking is to be the largest in company history. We plan to have these computers on the market within a year from now after conducting marketing research, product development, manufacturing and product rollout, will require roughly 3-4 months each to carry out. In addition, we plan on marketing these computers to our existing clientele base, by offering our new computers at a discounted price and to smaller, family-owned businesses who may lack the financial resources to afford higher-end versions from our competition. Doing so will allow us to slowly expand our business-to-business sales division as we delve further into this market and our clientele begins to expand through word of mouth from our existing base. After the launch of these computers, we plan

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