abhishreshthaa
Abhijeet S
Anixter International (NYSE: AXE) is a Fortune 500 (#404 [3], Fortune 2009) company based in Glenview, Illinois, USA and founded in 1957. Anixter is a leading global supplier of communications and security products, electrical and electronic wire and cable, fasteners and other small components. Anixter has physical presence in 52 countries and has more than 5,000,000 square feet (460,000 m2) of warehouse space. The Anixter Aerospace Hardware division focuses on the distribution of military and aerospace hardware.
In 2008, the company had $6.2 billion in revenue with a global presence that includes locations in 271 cities in 52 countries.[4] The company operates with four major divisions:
* Enterprise Cable & Security Solutions
* Electrical and Electronic Wire & Cable
* Fasteners
* Aerospace Hardware
In 1957, two brothers started a business with a $10,000 loan from their mother. They had an idea that would ultimately change the electrical wire and cable business. Until that time, distributors and wholesalers had to buy cable in bulk quantities directly from manufacturers. Lead times were long, quantities were fixed and flexibility was short. Those two brothers soon revolutionized the wire and cable business by having an inventory of cabling on hand. Customers could buy just what they needed. Anixter Brothers, as their fledgling company was known at the time, offered customers something they never had before: service.
Anixter loading dock circa 1965.
Customers saw the value in that service, and within the first year the brothers had made $300,000 in sales. By 1966, annual sales grew to $10 million. The main customers were still the distributors and wholesalers. In 1967, the company went public on the American Stock Exchange. In 1968, the Blue Book was written. The Blue Book is Anixter’s manual that describes the way Anixter treats its employees, customers and suppliers.
In the early 1970s, Anixter decided that if it wanted the company to grow it would have to reach out beyond its core customer base of distributors and wholesalers and reach out to the end-users of wire and cable. As the ’70s continued, the demand for wire and cable continued to grow. To meet the demand, Anixter became an international company when Anixter United Kingdom was formed in 1972. Through 1976, Anixter continued its growth, opening offices throughout the United States and Canada. Sales for 1976 reached a record $150 million. Throughout the late '70s, Anixter ranked as the largest distributor of electrical wire and cable in North America.
There are plenty of substitutes available in the market and it is said that there is a high threat coming from this group. Banks are offering the same services are aligned in the same agenda because of the similar services, although different in terms of interests and payments on credit. Therefore, Barclays is eyeing to compete from the unconventional companies which can give them the rate of return. In the emerging country, particularly in India, the customers are recognized to have a high propensity towards switching to other substitutes, especially in the case of private banking.
Entry Barriers
There is a high entry because of the emerging markets such as India and Africa that are actually highly regulated by the government and the central banks. A lot of control and decisions are operated in the banks of these countries that might regulate the interests on loans and deposits as well as controlling the money supply. The Barclays is not that popular in these countries because people are investing in governmental or public sector banks which is an advantage for Barclays to implement its strategy for the customers to have a quick and efficient service that can attract other potential clients.
Rivalry among the Existing Competitors
In the competition in the emerging markets, there is an indication of high rivalry because of the involvement of the public and microfinance institutions. It is therefore, difficult to compare Barclays because of the high regulations. Again, in the application of the strategies, the firm can acquire the major stakes in the market which gives them an easy entry and create a brand visibility.
Bargaining Power of Suppliers
There is a medium power among the suppliers of the bank who are definitely the people from whom the banks raise funds. The major source of funds of Barclays comes from the customers or depositors that are transformed to be their suppliers. In order to attract the larger funds, the private banks offer high interest rate which is important for the continuous sustainability of the bank. In addition, the Barclays Card is introduced to attract more clients and increase the volume of funds.
Bargaining Power of the Customers
There is a high power among the people in terms of utilizing the products such as their cards, loans and other services. The high power on the customers is gained because of the number of banks operating in the market that offer similar services. However, Barclays is in advantage because of the e-banking and the provided insurance services.
In 2008, the company had $6.2 billion in revenue with a global presence that includes locations in 271 cities in 52 countries.[4] The company operates with four major divisions:
* Enterprise Cable & Security Solutions
* Electrical and Electronic Wire & Cable
* Fasteners
* Aerospace Hardware
In 1957, two brothers started a business with a $10,000 loan from their mother. They had an idea that would ultimately change the electrical wire and cable business. Until that time, distributors and wholesalers had to buy cable in bulk quantities directly from manufacturers. Lead times were long, quantities were fixed and flexibility was short. Those two brothers soon revolutionized the wire and cable business by having an inventory of cabling on hand. Customers could buy just what they needed. Anixter Brothers, as their fledgling company was known at the time, offered customers something they never had before: service.
Anixter loading dock circa 1965.
Customers saw the value in that service, and within the first year the brothers had made $300,000 in sales. By 1966, annual sales grew to $10 million. The main customers were still the distributors and wholesalers. In 1967, the company went public on the American Stock Exchange. In 1968, the Blue Book was written. The Blue Book is Anixter’s manual that describes the way Anixter treats its employees, customers and suppliers.
In the early 1970s, Anixter decided that if it wanted the company to grow it would have to reach out beyond its core customer base of distributors and wholesalers and reach out to the end-users of wire and cable. As the ’70s continued, the demand for wire and cable continued to grow. To meet the demand, Anixter became an international company when Anixter United Kingdom was formed in 1972. Through 1976, Anixter continued its growth, opening offices throughout the United States and Canada. Sales for 1976 reached a record $150 million. Throughout the late '70s, Anixter ranked as the largest distributor of electrical wire and cable in North America.
There are plenty of substitutes available in the market and it is said that there is a high threat coming from this group. Banks are offering the same services are aligned in the same agenda because of the similar services, although different in terms of interests and payments on credit. Therefore, Barclays is eyeing to compete from the unconventional companies which can give them the rate of return. In the emerging country, particularly in India, the customers are recognized to have a high propensity towards switching to other substitutes, especially in the case of private banking.
Entry Barriers
There is a high entry because of the emerging markets such as India and Africa that are actually highly regulated by the government and the central banks. A lot of control and decisions are operated in the banks of these countries that might regulate the interests on loans and deposits as well as controlling the money supply. The Barclays is not that popular in these countries because people are investing in governmental or public sector banks which is an advantage for Barclays to implement its strategy for the customers to have a quick and efficient service that can attract other potential clients.
Rivalry among the Existing Competitors
In the competition in the emerging markets, there is an indication of high rivalry because of the involvement of the public and microfinance institutions. It is therefore, difficult to compare Barclays because of the high regulations. Again, in the application of the strategies, the firm can acquire the major stakes in the market which gives them an easy entry and create a brand visibility.
Bargaining Power of Suppliers
There is a medium power among the suppliers of the bank who are definitely the people from whom the banks raise funds. The major source of funds of Barclays comes from the customers or depositors that are transformed to be their suppliers. In order to attract the larger funds, the private banks offer high interest rate which is important for the continuous sustainability of the bank. In addition, the Barclays Card is introduced to attract more clients and increase the volume of funds.
Bargaining Power of the Customers
There is a high power among the people in terms of utilizing the products such as their cards, loans and other services. The high power on the customers is gained because of the number of banks operating in the market that offer similar services. However, Barclays is in advantage because of the e-banking and the provided insurance services.