A Business Letter

As the industry locomote into the mid-nineties, outgrowth slowed and the market matured. Motor prices came down, and electric motor dependability went up. By the late 1990s, competition heated up to the target where 12 out of 13 of Toshiba's top distributors of variable- relative frequency drives were interchange fewer new motors.

Several large manufacturers with deposit shops had withdrawn from the Confederate California market. Some of the area closures included the 30,000-square-foot facility of Swiss-based seaward Brown Boveri. General Motors' Electro-Motive Division had closed its motor animize facility in Los Angeles, while Reliance Electric had fold its shop in Anaheim.

The water industry nationwide was evaluate to spend $40 billion in upgrades of water and waste water treatment facilities in the near future, a remarkable part of which was expected to involve converting the associated electric motors to variable frequency drives.

The introduction of electric motors with variable-frequency drives greatly changed the market. It did so by increase motor system efficiency, reducing energy consumption, and changing repair requirements. In the motor repair business labor cost establish up the bulk of the costs (three-fourths of the costs); the other one-quarter includes parts and materials.

The Engineering Committee of the Electrical Apparatus tie-in (EASA) had led the develo

Gross income grew by 30% between the five years period of 1993-1997. This growth is due to the increased revenue, specifically in the operate add-in category.

- Looking at the industry attractiveness- rivalrous strength matrix and after analyzing Brithinee Electric's three business units (custom-made control panel, motor repair, and motor gross revenue) I concluded the following:

Custom-made control panel sales have high long-term industry attractiveness, due to the bouffant market in the United States and overseas especially in developing countries. They are also a strong competitive strength, due to the experience and skilled labor of Brithinee Electric.

Pollution and ozone levels are serious environmental concerns in this industry.

Custom made control panels and motor repair could have an effect on pollution and ozone levels of entire cities.

- Strong competition remains a threat. arguing in selling electric motors in the late 1990s is considerably stronger than it had been in the late 1980s. Moreover, customers want more educate control devices than previously. By the late 1990s, competition had heated up to the point where 12 out of 13 of Toshiba's top distributors of variable-frequency drives were selling fewer new motors. Intense competition is an industry inclination expected to continue.

- Cutting lead eons is another opportunity. formerly a project bid was accepted, it typically took Brithinee four to half-dozen weeks to build a control panel. The longest lead judgment of conviction was needed for acquiring the metal organize that housed the electrical components. expression the control panel might take only a week or two. Brithinee could look for other metal structure manufacturers that could provide the metal structure in less time which will enable Brithinee to provide faster service.

Brithinee should meet the ISO 9000 standards, which would make the company more visible and more competitive in the electrical apparatus industry. Most large man
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