A case study analysis of UEC Technologies (PTY) Limited with a focus on the growth strategies adopted.

Abstract

This dissertation is a focused qualitative case study analysis of UEC Technologies

(Pty) Limited (UEC). UEC is a wholly owned subsidiary of the JSE listed

telecommunications, multimedia and technology (TMT) group, Allied Technologies

Limited (Altech). UEC is the only South African based TV set-top box (STB)

developer and manufacturer. The focus of the case study analysis centres around

UEC's strategies of growth and globalisation in the global set-top box industry. The

research took the form of a qualitative case study based on in-depth personal

interviews with key decision-makers at UEC.

The research was supported by a detailed study of secondary data relating to the

STB industry as well as documentation prepared specifically for UEC relating to its

business practice and business methodology.

The case study focused particularly on the concentric diversification strategy adopted

by UEC. This strategy was analysed with specific reference to the acquisition

process followed by UEC during the negotiations with Zenith Network Systems

(ZNS), a division of the American electronics giant, Zenith.

The research culminates in the formulation of a company-specific analysis model

(figure 4.1) which is proposed to be used by UEC when analysing future potential

acquisitions. This company specific analysis model takes into account the current

academic theoretical stance on both growth and globalisation strategy while fine

tuning the process by adopting the specific requirements for both the STB industry

and UEC's current business position. The aim of this model is to analyse potential

concentric diversification growth opportunities by analysing elements of the spheres

of industry environment, operating environment and internal environment. The

industry environment is influenced by the barriers to entry into the industry and the

size of the market and industry. The operating environment is influenced by

globalisation and the need for growth. The internal environment is influenced by

access to new markets and clients as well as the need for new technologies and

products. The research dissertation culminates in a discussion of the model and the design, as

well as an evaluation thereof. The discussion in regard to the model concludes that

the model is in line with current academic as well as strategic thinking. Furthermore

that the model is meticulously designed to cater for UEC's unique requirements and

the specific requirements of the STB industry.

In conclusion to the dissertation, it is postulated that the model would be of

considerable benefit to UEC when analysing future acquisition opportunities. The

model is an ideal analytical tool as its elements are made up from corporate strategy,

has been crafted to align with UEC's specific requirements. This model provides a

formal framework for assessing acquisitions and thus enabling UEC to compare

multiple potential acquisitions against a fixed criteria model.