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Quest i on1-uset heCaseSt udyf orCompsi sataCr ossr oadst o di scuss: 

Whoi st hecompany?Compsis p1 Whatdot heydo?Their largest service line is systems integration for

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electronic p1toll collection (ETC). p12 SICAT ATMS SMV SGM Automotive Aerospace Updates & Maintenance (U&M)

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Wher ei si tbased?in the Brazilian industrial city of São José dos Campos p3

How manyempl oyees?By 2003, 165 employees Whenwasi tf oundedandbywhom?Compsis was founded in 1989

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by Ailton de Assis Queiroga, engineers from the Brazilian aircraft firm Embraer p3 Whoar et hemai npl ayer s?TransCore Affiliated Computer Services (ACS) MarkIV,

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Table 1 Major Competitors in Electronic Toll Collection

ETC Contracts*

Significant Players

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MarkIV, TransCore

These two firms shared 92% of the market.

Hardware

TransCore, MarkIV, Raytheon, SIRIT

Raytheon was particularly big in Canada, SIRIT in California.

Integration and Software

TransCore, ACS State and

TransCore and ACS each earned over $100 million in revenue on ETC. The others were far smaller: $10 million or less.

Local Solutions, VES Systems, CASETA Technologies, ETC Inc., Iteris Maintenance

ACS State and Local Solutions, Transcore

Back-office (Customer Service Center)

ACS State and Local Solutions, Transcore

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ACS was perceived as dominant in this area.

Whatar et hemai nevent sf ort hecompany?

1.In 1991 Compsis found its launching customer, General Motors Brazil,

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and from then on devoted its systems integration expertise primarily to the broad field of automotive products.

2.In 1996 Compsis decided to expand its technology strategy into a new area: intelligent transportation systems (ITSp3 In 1996 Compsis developed the first version of the toll collection system – SICAT 4 – specifically for the Brazilian toll collection market. P3 3.In 1999 Compsis collaborated with Philips, an American technology firm, to implement SICAT 4 systems for a toll plaza in Australia. This partnership worked extremely well. P5 In India, however, the technological advances of the project were overshadowed by the financial losses.p6 4. In the fall of 2001, Compsis began to upgrade SICAT 4.

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Whatar et hemai nchal l engesf aci ngCompsi s?p1 Revenue fell to US$3.3 million, primarily due to the Brazilian government's prolonged delay in awarding new toll road construction rights to concessionaires (road operators). Despite considerable efforts by the business development team, Compsis had been unable to win new ETC projects in international market (outside Brazil, not only in Latin America but in Europe and India as well. )

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Need to wait for the government announced the reopening of concession grants in Brazil and Brazil is a limited market o Can Compsis expand to the United States or other international market

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Lack of cash flow, decrease in SICAT revenue

Quest i on2( A)-Fr om yourcasest udy“Compsi sataCr ossr oads”cr eat e al i stoft hekeyr esour cesandcapabi l i t i es. Physical capital resources technology ETC software – SICAT – into a simpler, more flexible product Sales Office its headquarters in São José dos Campos.

o Human capital resources relationships, the company had strong ties to such leading Brazilian engineering universities as the Instituto Tecnologico de Aeronautica (ITA) and the Universidade do Vale do Paraiba (UNIVAP).

and insight of individual managers and workers in a firm founder was an engineers from the Brazilian aircraft firm Embraer, has industry insight and sufficient knowledge

o Organisational capital resources In its largest service line, systems integration for electronic toll collection (ETC), the company had gained the dominant share of the Brazilian market and had even managed projects in Australia and India. Compsis had developed strong relationships with the Brazilian government and toll road operators, as well as an international reputation among industry competitors for quality and technological expertise construction companies treat Compsis as a preferred vendor, to be used at their convenience whenever an ETC project arose

Quest i on2( B)-Usi ngt hel i stt hatyouhavecr eat edabove,car r yout aVRI Nanal ysi soft hosei dent i fiedr esour ces,not i ngwhi choft hese ar eV( Val uabl e) ,R( Rar e) ,I( I ni mi t abl e)andN( Nonsubst i t ut abl e)Pl easemakesur et hatyoupr ovi deevi denceandsuppor tf oryour answer s. uabl e V（Val ） ETC software – SICAT Physi calcapi t alr esour ces-

Human capital resources- founder was an engineers from the Brazilian aircraft firm Embraer, has industry insight and sufficient knowledge

Organisational capital resources -strong relationships with the Brazilian government and toll road operators,

R( Rar e) : Physical capital resources -ETC software – SICAT ( new generation if made :into a simpler, more flexible product)

I ( I ni mi t abl e) ETC software – SICAT – into a simpler, more flexible Physi calcapi t alr esour cesproduct

N( Nsubst i t ut abl e)

Quest i on3-Usi ngt heCaseSt udyandyourVRI Nanal ysi s:

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Whatopt i onsdoesCompsi shave?

To stay at Brazil and wait for the government to fund for tolling concessions as predicted. - To expand into US market -Expand into other international markets such as Latin America, Pakistan, Western Europe - To get away from electronic toll collection and widen its product suit like ATM.

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Whatar et headvant agesanddi sadvant agesofeach opt i on?

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Choice 1. Advantage: already have big market and strong relationship with government and toll road operators Disadvantage: the eventual market is limited in Brazil Choice 2&3 Advantage: larger market Disadvantage: strange market, no sales office in American, strong local competitors

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Choice 4 Advantage: less risk Disadvantage: need to coordinate and train employees...