Term and Advent Corporation

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  • Topic: Term
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  • Published : December 5, 2007
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The initial strategy of the advent corporation was the intention of making products that were significantly different from other company's products. Advent was an enterprise committed to the design and manufacturing of superior quality and high-performance products. Instead of competing directly with the experienced players in the market, Advent had the original intent to play it safe. The Advent Corporation had the idea of tapping the unexploited 5% of the home entertainment market which was less competitive. Kloss soon realized that The Advent Corporation audio business contained the technology that would support Advent's long-term goals. The corporation was not content with its current position in the market so they decided to branch out to a different market sector of innovative products, the big screen TV being one of them.

One of the strengths for Advent was that the corporation had an experienced manager; Henry Floss had years of experience working at Acoustic Research before he founded Advent. Another strength was Advent has a very strong core competency in the specialized audio market. The corporation has already manufactured and sold five different products for home entertainment use successfully. The Corporation had more assets than liabilities as seen in the balance sheet of Advent Corporation. The management of the corporation has determined to make a commitment to growing the company. Some of the weaknesses of the Advent Corporation were addressing the issues of the market uncertainty for their products. Another weakness was the fact that the corporation was a small start up company that has constraints manpower and production. There were no significant economies of scale existing in the industry at that time to measure the opportunity of success or failure. The corporation had no long term plans and autonomous marketing management in place once the product was created.
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