a) Challenger Technologies was known as the leading IT products ,PC clinic services and related products provider which established in 1984 in Singapore. It has grown from a small outlets to about 33 outlets include 11 specialty store ( Challenger mini, Matrix, Pixels) and 20 super stores in over Singapore and Malaysia. The company open these stores in a competitive famous and fragmented space such as Sim Lim square, Funan Digitalife Mall, The Clementi Mall, The Singapura etc…Challenger is a business of providing plenty of difference IT products and services. It has more than 180 IT suppliers and more than 50 product lines. The group has a strong relationship with IT vendors (include Hewlett Parkard Singapore Pte Ltd; Tech Pacific Singapore Ltd; Acer Computer Pte Ltd). This network help the company to provide a wide range of IT products to customers and provide company a lot of benefits such as competitive credit term and price term for payment. Challenger superstore’s product lines include computers, laptops, input devices, hardware, software, printing devices, office products, imaging and video products, multiplayer products, home entertainment appliances and so on. Matrix IT gallery are specialty stores set up to target customer who may not come to Challenger store. These stores offer customer the latest and most popular IT products (hardware or software) and focus on creating sales with lower margins. The group also provided post-purchased IT services to customers even they have not purchased the Challenger’s products. Beyond that Challenger Technologies are also design and produce electronics signage for commercial building, hotels and financial institution on a project-by-project. This business earned about 1.5% of the company revenue and also made a small loss (around $0.6 million). Beyond supply and installation, the company also provide maintainance and warranty service. Under the office supplies business, the company are also providing office supplies the business customers. The group entered the business by owning OA Supplies Pte Ltd in 2004. This business contribute 4% of revenue of the company. Challenger invested 40% stake in Beijing-based anti virus software. Challenger has a large size of operation.
The company are enjoy their economies of scale based on the size of their operation. Challenger can negotiate for lower rental fees and more affordable pricing term that can reduces their operation cost. Because of the low cost of economies of scale, the company are more flexible in IT products and sevices price and increase the competitiveness in IT market. Challenger divided the market into small format. They have Challenger superstore which target high-level customers. These customers are willing to pay for premium quality products. The company also have small outlets which focus on budget conscious customers. This type of business help Challenger take care and satisfy both high-end customers and budget-conscious customers.
In the future, Challenger will expany their business operation in Singapore and Malaysia. In Singapore, Challenger’s directors believe that there are still have more space for company to expand their business. The company intend to open more outlets to increase the sales, profits and market shares. In Malaysia, Challenger are actively searching for opportunities for their business expandation by introducing their small format outlets as well as their superstores. Where Challenger find opportunities, they are intend to use these opportunities carefully and prudently. Another future plan of Challenger is developing IT service business. Challenger’s IT services are provided through a granting plan carried out by “ITech care”-Challenger’s subsidiary. These services are helping, support and complement IT products at Challenger small format outlets and Challenger Superstores. “ITech care” allows company to be a strong IT services and products provider in Singapore. In future, Challenger intends to expand the number of ITech care service and may also increase and improve the range of IT services. Expand Signage business overseas is one of the Challenger Technologies Pte Ltd’s future plans. Nowaday, Challenger electronic signage is only available in Singapore market. The company believes that they can find a market in other countries beside Singapore for them to expand their electronic signage business. Their plan is to expand their business to another countries by provide consultancy service to third party operator under a franchising scheme. This plan will help company to minimize risk and capital cost to the company.

Challenger earns revenue from selling IT products and on-site IT services through Challenger Superstores, Matrix business units. The group decided to corporate to sale department to serve corporate clients. Challenger may sell their products to these customers in about 30 days of credit terms. Corporate customers contributed 4.2% of the group’s revenue in final year of 2002 and 3% of the company revenue in first 6 month of 2003 (ended in 30 June). Funan Superstore contributed 78% revenue of Challenger in final year 2002 and 17.3% revenue respectively of Challenger for the 6 months ended (30 June 2003). Under the electronic signage business, the company also earns profit from maintenance services and post-purchase services. This business bring to Challenger 2% and 1.7% of Challenger’s revenue in first 6 months in 2003 and final year of 2002