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Memorandum Example

In: Business and Management

Submitted By emmanuelsmorin
Words 455
Pages 2
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MEMORANDUM

TO: Mr. Sanjiv Sidhu
FROM: Mr. Emmanuel Morin
SUBJECT: Potential strategic threats, new IT developments, improved vision
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DATE: 10/16/12

INTRODUCTION

i2 Technologies currently has a strong position in the industry market, excelling in innovation, industry knowledge, and IT methodology. Yet, there are strong potential threats in the form of IT development that can weaken i2’s position in the future. This memo proposes potential strategic threats that may develop over the next decade and key IT developments that may be overlooked. This memo also suggests an improved vision regarding the future business path of i2 Technologies. PROPOSED STRATEGIC THREAT One of the key strategic threats i2 may face in the next decade is the IT development of its competitors. SAP’s ERP, for example, is currently the leading competitor for i2. Although ERP’s focus is different to i2’s supply chain planning, SAP has the capability and the resources to expand its services to match SPC. This expansion can significantly reduce i2’s market share. It is important that i2 leverages its differentiation strategy within the SCM optimization to prevent competitors from increasing in market power. KEY IT FUTURE DEVELOPMENTS OVERLOOKED Technology is always changing and companies are finding new ways to make their operations more efficient. Eventually, the companies that are interested in technology would have reached their desired efficiency levels. Once these companies reach their desired efficiency level, i2 may suffer a reduction of sales. It’s also important to note that with the increase in technology, more high-end companies may be willing to consolidate to reduce costs. Since i2 technology focuses on

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