COMPSIS AT A CROSSROADS Essay Example

  • Category:
    Management
  • Document type:
    Assignment
  • Level:
    High School
  • Page:
    1
  • Words:
    314

Introduction

Compsis, based in Sao Jose dos Campos, was established in 1989 by engineers from Brazilian aircraft firm Embraer. Since its establishment, Compsis have been trying various ways to improve its technology until in 1991 when it found its launching customer, General Motors. There after compsis devoted its system integration expertise primarily to the automotive products’ broad field.

Though 2004 was not a good year for Compsis, it has been growing steadily and successfully since its establishment. It has gained a big amount of the Brazilian market share through its largest service line, systems integration for electronic toll collection (ETC). Compsis has also managed to execute projects in India and Australia. It managed to develop powerful relationships with the government of Brazil and operators of toll road plus global reputation between industries that compete for quality and technological expertise.

Compsis however in 2004 seemed to be in problems. Revenue in this year fell to 3.3 million due to prolonged delay in giving new toll road construction rights to concessionaires by Brazilian government. It was thus very hard for compsis to win new ETC projects outside Brazil. This therefore made compsis to be at crossroads. The year 2005 was forecasted to be a better year. The government of Brazil was expected to give a lot of concessions in this year, complete new SICAT version and compsis would be ready to try new products that range from systems of managing traffic to buses that are magnetically guided. Compsis was also expected to expand in other parts of Latin America and other developing ETC markets.

Conclusion

From the discussion, it is clear that though Compsis has been growing steadily since its establishment in 1989, it was at crossroad in 2004. It revenue fell by a huge margin and it could not be able to expand in other parts of Latin America and other developing ETC markets.