Fujitsu to expand service sales amid lower hardware demand
The Japanese company Fujitsu has been experiencing a lack of demand for it’s hardware product so is planning to expand its sales of services. Profit has been declining for three years straight which is terrible as this could lead to the company going into bankruptcy if they are no longer able to pay for their costs of production. Fujitsu is planning on targeting corporate businesses rather than consumers. The reason is that technological advancements are big today and it business information technology plays a huge role in the survival of a company. Fujitsu creates the necessary computers parts that a corporation and company needs for example cloud computing. This is vital for storing information and as companies have a lot of information that they need to store and need to be able to access they would demand from computer service providers like Fujitsu. As a whole this new project should benefit Fujitsu since consumers are no longer demanding computer services due to the recession because these are not normal goods but are more luxury goods. In addition, this new strategy might help with the declining profits especially since sales this year were 2.4% less than last year.
Article link: http://www.businessweek.com/news/2012-11-18/fujitsu-to-expand-services-sales-amid-declining-hardware-demand