Teradyne Case Study Essay

The vision that Nick DeWolf had for Teradyne’s value proposition was to supply quality electrical trial equipment to carry through the big demand in the market for dependable electronic constituents in the 1960’s industrial market. DeWolf felt that there was a job in the market as many users had to construct their ain equipment to prove as there was a deficiency of competent and capable manufacturers in the semiconducting material constituent proving field. These users and companies must utilize valuable clip to do their ain trial equipment. which would tend them to buy the equipment from an outside beginning.

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To set up themselves in the market. Teradyne focused on cutting down the cost of the expensive trial equipment and bettering the equipment’s dependability by cut downing the trial equipment’s size and through the usage of military class constituents. Teradyne expected to hold equipment that would hold a utile life of five old ages with a care rhythm of three months at the most. Implementing their scheme. Teradyne expected that the capablenesss of their equipment would be ten times better than what was presently on the market.

Teradyne projected to see themselves go profitable in the 6th one-fourth. They expected a quarterly net income of $ 6300. 00 ( in 1000s ) . The jutting hard currency flow at the terminal of the one-fourth is ( $ 40. 400. 00 ) ( in 1000s ) . In the quarters taking up to when they became profitable. Teradyne expected to devour $ 140. 300. 00 ( in 1000s ) .

Teradyne’s concern program describes the job and need that they are puting out to work out in a good affair. From discoursing the job and demands. they have a good attack on the client base that would use their merchandises. Several subdivisions discuss the concern demands of their possible clients and so provides solid concrete Numberss that support Teradyne’s declaration to make the merchandises that will carry through the demands.


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