Analysis Of Clipboard Company 's Product Portfolio

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Introduction Over the past few years, Clipboard Company’s product portfolio has included three tablets, namely X5, X6 and X7.Noting that the three products have varying prices and features, customers have varying preferences with respect to the company’s products. Further, the company’s objective has been to maximize revenues by varying prices, output and research and development proportions. However, the most optimal strategy with respect to research and development, and prices for the abovementioned product needs to be determined by analyzing results from SLP2 and different R&D and price scenarios using the CVP analysis. In this regard, the current study will analyze different R&D and price scenarios, thus provide a revised strategy for…show more content…
Nonetheless, the company would have to maintain research and development costs at 33% for the three tablet models. Possible strategy for X6 In regards to X6 tablet, lowering the price to $420, while maintaining research and development at 33 percent, the company has to sell 1,508,213 tablets to achieve the default run profitability. This strategy lower the volume of X6 tablets increases. However, if the company lowers X6 tablet prices to $420 and R&D costs to 25 percent, the company has to sell 1,501,356 tablets to achieve the default run profitability. This indicates that lowering both to $420 and R&D costs to 25 percent would lower production volumes from default run. Alternatively, increasing prices to $450 and increasing R&D costs to 40 percent lowers production volumes for X6 tablets to 1,367,676.This indicates that the strategy would require considerably less units to achieve the default run profitability; since consumers will be willing to pay more for well-designed tablets. Based on the analysis above, the possible strategy for X6 tablets would set prices at $450 and increase R&D costs to 40 percent for the years 2012 and 2013.However, increasing prices to $470 and raising R&D to 45 percent would enhance profit growth in 2014 and 2015.The abovementioned strategy is summarized in the following strategy mix. Year by
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