abhishreshthaa
Abhijeet S
Crazy Eddie is the name of a consumer electronics retailer conducting business through the internet and by telephone. The venture is the most recent to be doing business under the Crazy Eddie name, with the most well known (and later infamous) being a chain of retail stores that operated throughout New York, New Jersey, Pennsylvania, and Connecticut for nearly twenty years.
Crazy Eddie was started in 1971 in Brooklyn, New York by businessmen Eddie and Sam M. Antar as ERS Electronics, named after Eddie, his cousin Ronnie (Ronnie Gindi, a partner), and his father Sam. The chain rose to prominence throughout the Tri-State Region as much for its prices as for its memorable radio and television commercials, featuring a frenetic, "crazy" character played by radio DJ Jerry Carroll (who copied most of his shtick from early TV-commercial pioneer, used car and electronics salesman Earl "Madman" Muntz). At its peak, Crazy Eddie had 43 stores in the chain, and earned more than $300 million in sales.[1]
In February 1987, the U.S. Attorney for the District of New Jersey commenced a federal grand jury investigation into the warranty billing practices of Crazy Eddie. In September of that year, the United States Securities and Exchange Commission initiated an investigation into alleged violations of federal securities laws by certain Crazy Eddie officers and employees. Eddie Antar was eventually charged with a series of crimes.
Unable to sustain his fraudulent business practices, co-founder Eddie Antar cashed in millions of dollars worth of stock and resigned from the company in December 1986. Crazy Eddie's board of directors lost control of the company in November 1987 after a proxy battle with a group led by Elias Zinn and Victor Palmieri, known as the Oppenheimer-Palmieri Group. The entire Antar family was immediately removed from the business. The new owners quickly discovered the true extent of the Antar family's fraud, but were unable to turn around Crazy Eddie's quickly declining fortunes. In 1989, the company declared bankruptcy and was liquidated. Crazy Eddie became a known symbol for corporate fraud in its time, but has since been eclipsed by the Enron, Worldcom and Bernie Madoff accounting scandals.
According to (1980), some industries tend to become more profitable and competitive than the others. Henceforth, an existing industry such as the ReignCom should always remember that their industry will only survive by utilizing a strategy that would enhance the competitiveness of the business. In Porter’s model it is assumed that there are five forces that particularly affect an industry. The model is useful if a manager who strives to get the better off rivals. The framework provides excellent understanding of the industry context in which the firm operates. Porter’s Five Forces Model includes threat of entrance of new industries. The main objective of ReignCom is stay in the competitive position in the global market Although, the company knew that this type of industry belongs to higher entry barriers, the management has been able utilise an approach to make sure that the company will still be competitive in the international level.
In order for ReignCom to compete and stay in the international marketing environment, the management team had provided a long term vision to be followed by the industry as a whole. The use of merging and acquisitions has been able to strengthen the capability of the company to strongly and efficiently compete within the marketplace in both local and international arena. The agreement made by ReignCom with these leading industries has strengthened their capabilities to compete in the global arena in terms of producing quality products and service especially for their MP3 player and iPod systems. Moreover, with the existence of new entrants in this kind of business, the competition becomes tougher and tougher. Since, these new entrants can be a threat for the company in terms of substitute products, ReignCom have again utilizes a strategy that will enhance their product more. The company utilises product differentiation approach as their marketing strategy to ensure that with these new entrants their product will still be different, unique and full of quality to satisfy their target market. The bargaining power of a supplier could be a threat for the profit of the company, and ReignCom management is aware of it. Since the company’s goal is to provide the customers they needs and expectations in terms of diamond production, the company has been able to utilize all its resources. In addition, ReignCom also uses supply and distribution channel effectively. Porter’s also include in his model the concept of the bargaining power of Buyers. Hence, ReignCom sees to it that their clients will be satisfied for their products with regards to aviation or special material products or service. According to the management of the company, the fundamental premise is a simple as achieving the core mission and objective by merely satisfying their customers and clients as ReignCom considers the intensity of rivalry. In this manner, they are willing to provide strategies and techniques in a way that their competitors will see them as a tough competitor for the benefit of the whole organization.
Since the competition of these industries worldwide is very strong, ReignCom utilizes all their resources to enhance the operation of the ReignCom and to be recognized as the leading industry in diamond production. They also tried to include innovative marketing strategy and used technologically advanced equipments to produce quality MP3P products. In addition, it also shows that part of the five forces of the company is product or service differentiation as ReignCom has been able to adapt to the marketing environment because of its strong commitment of providing quality products and services for both of their business operations.
Crazy Eddie was started in 1971 in Brooklyn, New York by businessmen Eddie and Sam M. Antar as ERS Electronics, named after Eddie, his cousin Ronnie (Ronnie Gindi, a partner), and his father Sam. The chain rose to prominence throughout the Tri-State Region as much for its prices as for its memorable radio and television commercials, featuring a frenetic, "crazy" character played by radio DJ Jerry Carroll (who copied most of his shtick from early TV-commercial pioneer, used car and electronics salesman Earl "Madman" Muntz). At its peak, Crazy Eddie had 43 stores in the chain, and earned more than $300 million in sales.[1]
In February 1987, the U.S. Attorney for the District of New Jersey commenced a federal grand jury investigation into the warranty billing practices of Crazy Eddie. In September of that year, the United States Securities and Exchange Commission initiated an investigation into alleged violations of federal securities laws by certain Crazy Eddie officers and employees. Eddie Antar was eventually charged with a series of crimes.
Unable to sustain his fraudulent business practices, co-founder Eddie Antar cashed in millions of dollars worth of stock and resigned from the company in December 1986. Crazy Eddie's board of directors lost control of the company in November 1987 after a proxy battle with a group led by Elias Zinn and Victor Palmieri, known as the Oppenheimer-Palmieri Group. The entire Antar family was immediately removed from the business. The new owners quickly discovered the true extent of the Antar family's fraud, but were unable to turn around Crazy Eddie's quickly declining fortunes. In 1989, the company declared bankruptcy and was liquidated. Crazy Eddie became a known symbol for corporate fraud in its time, but has since been eclipsed by the Enron, Worldcom and Bernie Madoff accounting scandals.
According to (1980), some industries tend to become more profitable and competitive than the others. Henceforth, an existing industry such as the ReignCom should always remember that their industry will only survive by utilizing a strategy that would enhance the competitiveness of the business. In Porter’s model it is assumed that there are five forces that particularly affect an industry. The model is useful if a manager who strives to get the better off rivals. The framework provides excellent understanding of the industry context in which the firm operates. Porter’s Five Forces Model includes threat of entrance of new industries. The main objective of ReignCom is stay in the competitive position in the global market Although, the company knew that this type of industry belongs to higher entry barriers, the management has been able utilise an approach to make sure that the company will still be competitive in the international level.
In order for ReignCom to compete and stay in the international marketing environment, the management team had provided a long term vision to be followed by the industry as a whole. The use of merging and acquisitions has been able to strengthen the capability of the company to strongly and efficiently compete within the marketplace in both local and international arena. The agreement made by ReignCom with these leading industries has strengthened their capabilities to compete in the global arena in terms of producing quality products and service especially for their MP3 player and iPod systems. Moreover, with the existence of new entrants in this kind of business, the competition becomes tougher and tougher. Since, these new entrants can be a threat for the company in terms of substitute products, ReignCom have again utilizes a strategy that will enhance their product more. The company utilises product differentiation approach as their marketing strategy to ensure that with these new entrants their product will still be different, unique and full of quality to satisfy their target market. The bargaining power of a supplier could be a threat for the profit of the company, and ReignCom management is aware of it. Since the company’s goal is to provide the customers they needs and expectations in terms of diamond production, the company has been able to utilize all its resources. In addition, ReignCom also uses supply and distribution channel effectively. Porter’s also include in his model the concept of the bargaining power of Buyers. Hence, ReignCom sees to it that their clients will be satisfied for their products with regards to aviation or special material products or service. According to the management of the company, the fundamental premise is a simple as achieving the core mission and objective by merely satisfying their customers and clients as ReignCom considers the intensity of rivalry. In this manner, they are willing to provide strategies and techniques in a way that their competitors will see them as a tough competitor for the benefit of the whole organization.
Since the competition of these industries worldwide is very strong, ReignCom utilizes all their resources to enhance the operation of the ReignCom and to be recognized as the leading industry in diamond production. They also tried to include innovative marketing strategy and used technologically advanced equipments to produce quality MP3P products. In addition, it also shows that part of the five forces of the company is product or service differentiation as ReignCom has been able to adapt to the marketing environment because of its strong commitment of providing quality products and services for both of their business operations.