Future Of Sensors : A Study Conducted By Intechno Consulting

A company situation analysis can be defined as “matching the company’s strategy to external market circumstances and to internal resources and competitive capabilities.” We believe that our company, Chester Electronic Sensors, is currently in a position to spring ahead in the Electronic Sensor market. The industry in 2011 (round 0) consists of six competitors in very similar positions, holding virtually equal market share. We will use indicators in the industry to help determine our position and build our marketing, production, R&D and financial strategy. The situation analysis, as outlined by Capsim, will help provide us with a picture of the current conditions of the market and how it will develop in the next 8 years (rounds). This

The sensor industry is an attractive industry due to its’ rapid growth rates and high entry barriers. Additionally, there are no close substitute products. The bargaining power of suppliers is not a factor affecting the sensor industry at this time. However, the bargaining power of buyers is extremely strong, due to the fact that switching costs are low, and most product segments are fairly standardized. The sensor industry is also characterized by intense rivalry among six strong competitors.

Traditionally, USA has been major market followed by Europe and Japan. The top 20 companies account for 77% of the market share (see figure 1). The HHI index is 378 indicating a highly competitive market. Porter’s 5 forces analysis indicate that:

The initial strategy was to maintain a competitive presence in each segment by keeping our prices aligned with the average for each target market, while maintaining costs low. Specifically, it was our goal to become the leader in Traditional and low-end segments of the sensor business by allocating significant resources to R&D, marketing and promotions for these products. Our differentiator would be the result of a high investment in R&D to ensure our products were the best available.

Chester chose to enter the sensor industry in 2016 as the niche cost leader. Our mission is to providing trustworthy products to our customer base. Our goal is to offer these products at a cutting edge price, with low overhead, at a high volume. By focusing on the Traditional and Low End segment of the market, Chester’s ability to achieve our mission made it possible to gain market share. Many aspects went into the logistics of the supply chain in order to carry out our operation. While the cost leader strategy is not always an opportune circumstance for the traditional segment, it allows us to offer lower prices to entice customers to purchase our products over other companies in the industry.

The majority of our available resources, approximately 60%, will be allocated to High End and Performance sensors, as at the end of six years our goal is to control 35% market share in these two categories to become industry leaders. As mentioned above this will be done by increasing the amount of spending in research and development, production, and the marketing and sales budgets to match the projected sales forecast. The remaining resources, around 40% total, will then be distributed among the other three products as we would like to maintain a market share between 20-30% in each of the remaining categories. Being active in the secondary markets allows us to offset the

During the course of the simulation, my team’s strategy was to adopt and stick to the Niche Differentiator strategy. To accomplish our mission, we focused on high end, performance and size sensors and hoped to seize a dominant presence in the industry. This approach allowed us to reduce prices in low end and traditional while positioning to better take over High End and Performance industry segments.

The fundamental purpose of this project is for the team to collaborate to find innovative solutions for unmet needs within our company, Digital Monitoring Product Inc. Group 26 will analyze and evaluate each individual’s contribution based on his or her potential for the greatest success within the company and within each of the concepts individual market. The paper will act as a guide and direct one through the process of Team 26’s voyage through each concept eventually leading up to

1. If you or your team decides to introduce a new sensor product, when should capacity and automation be purchased?

I am writing this memo as a member of the Andrews management team to notify you of the developments made on a preliminary business strategy that we are anticipating to be both successful and exciting. The sensor industry has experienced increasing product demand recently, as well as a universal desire for smaller and faster sensors in both the low and high tech market segments. Through the conduction of an external analysis, we have identified five major competitors within this industry, all sharing a similar control of suppliers and buyers to our company. The main goal of our strategy is to gain an advantage

1 out of every 133 people in the general population is glutton intolerant. Meaning that in a school of 1,330 students, you might expect around 10 people to require gluten-free diets (Michealis, 2016). For thousands of Canadians with celiac disease or gluten sensitivity, going out to eat is sometimes difficult and with anxiety because any item on the menu could have the possibility of giving you bad symptoms if it contains gluten. However, the Nima Sensor, which was created in late 2015, would work to put their minds more at ease by helping detect 20ppm or more of gluten in a drink or food in exactly two minutes (Park, 2015). All it takes is inserting a sample into the well of the device, and an antibody that is loaded with a disposable cartridge scans it to find traces of gluten inside of it. If there is trace of gluten, a frowning face lights up. If it is safe and does not contain gluten, a light with a smile appears. The light is located on the bottom left corner of the product. (Nima.org,

* 1. Understand business strategy and competitive environment. - There is plenty of room for growth of this market, only 5% of the market has been penetrated and Sensormatic is the leader in security surveillance system sales. To invest in throw away tags would be an innovative position relative to cost.

Andrews Corporation is a multimillion dollar company that was designed when the parent company was mandated by the SEC in a monopoly settlement. This action resulted in six smaller companies. Along with the other five companies when the government split a monopoly into identical competitors, Andrews manufactures and sells sensors in five diverse market segments. As a monopoly, operating inefficiencies and poor product offerings were not addressed because increasing costs could be passed onto customers. Secondly, mediocre products would sell because customers had no other choices. Although last year’s financial results were decent, it is now our job increase product sales, marketing strategies, efficient production, and proper financial management to achieve financial greatness.

Business opportunity: For businesses this offers a major cost saving opportunity. An estimated 3.9% of sales losses each year are accounted for by shelves going empty of products in demands. With the use of sensors within retail, this would not happen due to the

It was February 15th and Thomas Schmidt was driving to TomTom’s headquarters in Amsterdam, anxious to celebrate with his team the achievement of 2017’s first milestone: surpassing the barrier of 700,000 connected vehicles.1 The company PR manager had already prepared the press release to reinforce its positioning as the market leader for two years in a row.2 However, he was still concerned about a report he read a month ago, regarding the growth track of the division he led.