Minitel was a leading value-added technology distribution company founded in 1987. It gained success developing and distributing innovative brands, through its retail and resale channels, that employees travelled worldwide to find. After João George arrived as Director of Strategy he grew revenues to €7.8m in 2012. In September 2014, Minitel fell on harder times, resulting from shrinking product portfolios, outdated employees and the economic climate. In its 27 year history, Minitel maintained employees, promoting people as Minitel grew, under-skilled and ill-equipped they were also highly paid, contributing to Minitel’s high cost structure. Retailers were powerful with tough demands; they began selling less which had a knock-on effect at Minitel. Value-added had the greatest potential, however Minitel focused on retail, fighting a losing battle in doing so. In value-added João needed to reach the final consumers in order to boost sales and prevent Minitel from failing. The main findings are: Minitel’s brand portfolio is too concentrated and not spaced out appropriately along the product-lifecycle. Building a portfolio is a continuous process and must constantly be updated and added to as established brands mature and die out. The growth of the internet is a threat to Minitel, however if leveraged effectively could also be used as a tool. Minitel’s employees’ hindered chance of a turnaround, João should dismiss underskilled employees with rooted mentalities, replacing them with fresh and creative employees, with experience or relevant degrees. Retail is a slowly dying industry, Minitel should harvest its sales and maintain them for as long as possible but should not focus on this division as the main source of income. Minitel need to focus on and grow value-added. They should focus on getting closer to the final consumer by providing seminars and webinars to interest and attract people they wish to sell to, instead of leaving this to the reseller.
Date of Award | 2015 |
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Original language | English |
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Awarding Institution | - Universidade Católica Portuguesa
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Supervisor | Nuno Magalhães Guedes (Supervisor) |
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Business case studies : Minitel
Manojlovic, C. (Student). 2015
Student thesis: Master's Thesis