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THE STRATEGIC QUESTIONS FOR GILMAN, JULY 1990

Whereas the first goal of the company is to achieve the number one market share in copiers, th€ company must continue to consider the long - term development of its product line and positiOr in the marketplace. It may lose the Ricoh business at any time since it cannot influence th competitiveness of Ricoh machines. At the moment, Ricoh represents over 90% of Gilmar turnover, a precarious position for a distributor.

Chamchai has therefore developed a long range vision for Gilman: 'To be th best office equipment supplier in Thailand for service, quality-distinguished by exceptional responsiveness to customer needs'. He has broadened his description of the potential product mix to be anything that goes into an office'. He wiB consider typewriters, printers, computers, key telephones, even 0ffice furniture. He expects to look into the possibilfty of acquiring a computer distribution business within two years.

None of the company's growth outside of Ricoh has been worked out in detail. Charnchai seems to be struggling most with the copier business: what niche it will fill in the marketplace, how ft )\) will build upcountry sales channels, who its dealers/agents will be, how the company will bind

them to Gilman, what they will look like, what their range of products and ser.'ices will be. Longterm strategy may evolve in a number of directions. The company could get involved in the distribution of a number of unrelated products through lnchcape (i.e. check-handling and mall- handling equipment). It could move further into retail.

Fryett. like Chamchai, has as his first priority the mission to overtake the firm's competitors. However, he, too, is continually examining the long-range vision of Gilman and the formula for the entire Business Streams Group. Should ft invest fts resources to dominate the copier business, and plan on an eventual joint venture with Ricoh? Should it build a flexible distribution and retail network that will allow it to pick and switch among principals, as the dominant player in business machines marketing and distribution in all of the lnchcape Pacific countries?

Chamchai concludes: 'First we beat our competitors, then we beat Sahaviriya...'


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