It has been in business for 15 years and was formed after the liquidation of a company producing records. Its production is highly automated and takes place in a completely dust-free environment. Their turnover last year was 175 million. A range of CD ROMs, DVD discs and other data recording equipment. A rapidly changing and evolving market.
Technological developments come thick and fast.
All products are sold to UK firms, but there is intense worldwide competition for the business. The shares were floated 15 years ago and apart from 2 big institutional investors they are mainly owned by small shareholders. There is a high level of indirect costs. The labour required is relatively unskilled for production and direct costs are a small proportion of overall costs. Marketing is therefore based on meeting regularly to develop these strategic relationships.