Sherazi Automation, Australia: Strategic B2B Relationship for Survival and Growth
Sherazi Automation, a leading System Integrator company in Australia, the company provides Automation services to its end users who mainly deal in industry verticals like Oil & Gas (O&G), Metals & Mining(M&M), Food & Beverage (F&B), etc. The newly appointed CEO David Sherazi was closely monitoring the business growth every quarter. In 2014 the new Australian Government came into power, which resulted into an unstable business market scenario because the new Government levied heavy taxes on the industry verticals such as O&G, M&M and F&B.
Buying behaviour and consumption pattern of consumers were affected by the change in taxes. In order to deal with this decline in demand of automation services, David Sherazi planned to restructure Sherazi Automation’s pricing strategy.
Buying behaviour and consumption pattern of consumers were affected by the change is taxes. This change percolated and affected the B2B business customers. As a result, the business demand of Automation service integrators like Sherazi Automation in Australia was highly skewed.
To cater to this uncertain recession and grab the very few floating business opportunities, David Sherazi planned to restructure Sherazi Automation’s pricing policy to have consistent business and regular cash flow for the coming quarters.................
Sherazi Automation, Australia
CEO David Sherazi was very satisfied after he had evaluated the financial results of his company Sherazi Automation a leading System Integrator, located in Australia. In 2013 the company had a net income of 28 million AUD, this was the highest in the company’s history (Exhibit I).
Sherazi Automation was founded by Troy Sherazi in 1985. In three decades, the company had done substantial business and was one of the leading and reputed System Integrators in Australia.............
Australian Automation Business Situation in 2013
Following the change of Australian government and rise in taxes in 2013, Sherazi Automation started to feel the heat of its fiercely competitive system integrators. These system integrators where mostly unorganised players who shook hands and came together seeking a symbiotic mindset to survive the business draught which the external environmental and political conditions had to offer. This opportunistic hand shake strategy of small unorganised system integrators allowed them to bid and offer the best competitive prices and win projects from their customers. The Australian business market had become very cost sensitive...........
Global Partnership?
Earlier David thought that his business relationships build over the years would help him seek business and engineering projects; however, he soon got a hint from his customers that the order will go to the customer with the least price.
Observing this situation and thinking about the next step forward, reminded David about his travel to a Automation fair conducted in USA. Amongst the various people whom David met, he could distinctly remember his meeting with Agnello Raymond, the CEO of AutoIndustrial Technologies (India) and had rendered an interesting presentation about the Global Business Delivery Model through which AutoIndustrial Technologies partnered with System Integrators across the world. The presentation gave insights about the various services which AutoIndustrial Technologies offered and the important insights about how they successfully partnered and executed on site and off site business worldwide (Exhibit II)..........
Closing Section – The Dilemma
On one side there was an opportunity to earn huge profit by partnering with a Reliable & Dependable Outsourcing & Engineering partner, who had domain experience in similar industry verticals and had a well proven Global Business Delivery Model (Exhibit VI)............
Exhibits
Exhibit I: “Sherazi Automation, Australia, EPC Sector estimate, 2017
Exhibit II: Sherazi Automation, Australia, Global Network of AutoIndustrial Technologies
Exhibit III: Sherazi Automation, Australia, EPC Sector estimate
Exhibit IV: Sherazi Automation, Australia, Operational Excellence in AutoIndustrial Technologies
Exhibit V: Sherazi Automation, Australia, Auto Industrial Technologies Business Model
Exhibit VI: Sherazi Automation, Australia, Business Model