Implementation 7.1.1 Initial and Market Entry P ases -Technical Development and Market En try Having concluded the initial (trialing phase – the DA project), The three MEs are for ming a new CLIMAWIN company to field enquiries from potential customers around Europe (and later other) markets – as well as for other mutual purposes. All Climawin components are now available for production at batch scale and, with s cale increasing as orders multiply, their costs will become cheaper. Brand development was carried out during the DA project phase and the Climawin b rand is now more known than at the outset as is the concept of and term ventilation window. Further brand development will be pursued ion the next phases with the …show more content…
These would be distributed across Europe and addr ess local markets and conditions so increasing penetration and accelerating sales. This second activity is la rgely a mass production and reselling of stock activity commanding a much higher profit margin than the first. It is envisaged that tightly controlled licencing agreements made with these LPPs ac ross Europe, will ensure continued growth in revenues (though increasingly from technology rath profit margins. r than wind ows and thus higher Further expansion after additional investment, whether by a large investor or by IPO, may be considered later. The option at this point of partnering with a larger manufacturer who has broader routes to larger markets will also be considered at this time. 7.1.3 Revenue and Profits Sales and margins (profits) are projected as follows: 2017 2018 Year 1 Year 2 Year 4 Year 6 Ye ar 8 Year 10 Revenue €400,000 €120,000 €2,500,000 €6,300,000 €1 0,050,000 €15,250,000 Costs €325,000 €86,7000 €1,750,000 €4,095,000 € 6,231,000 €4,575,000 CW Sales €400,000 €120,000 €1,900,000 €4,500,000 €6 ,250,000 €7,000,000 Component Sales (LPPs) € 600,000 €1,800,000 € 3,800,000 €8,250,000 Gross Profits €75,000 €33,300 € 750,000 €2,205,000 €3 ,819,000 €10,675,000 Jobs 2 8 10 20 30 44 The above table illustrates the sales, costs and gross profits in years 1 t 10. It illustrrates the gradual shift from an emphasis on sales of (lower profit) CWs in the early years to (higher
My recommendation is for the company to stay focused on its main competitive advantage of supplying a
Cost – HD’s cost of goods sold has increased from 1991 to 1995 due to expansion of production. Similarly, the cost of selling, admin and engineering has also increased.
We believe that they should expand. Nucor is self-reliant and has a good strategy which made the company the second largest producer in the US. They should expand to global market to be able to increase their market share. They can go to markets such as Russia, China or Brazil, since they are dumping into the US market. However they should evaluate the Porter five forces before making any decisions since these markets are really competitive.
Thank you for the opportunity to be part of this exciting project. Per your request I have evaluated the options for enhancing the production capacity to maintain and further develop our market share.
From above statement it is clear that investment is worth it because market potential is much higher then the investment made to develop this product.
To develop such strategy mix of strategic options will be applied including Integration to deal with competition and Intensive + Diversification strategies for product and market development.
(PFMA) Increased competition has lead to greater effort for developing new products in order to meet customers demand. Therefore a lot of money has been put into Research and Development strategies, stimulating technical progress in this industry. (Mars, 2003)
Opportunities include huge market, no competition for at least three years, potential huge margin, good marketing strategy.
There is certainly additional scope to continue and expand in the U.S. by transforming some processes into strategic capabilities. They could home deliver, diversify
Analyzing the trends and consumer behavior indicates that horizontal expansion will be necessary to capture the full and growing target market. Horizontal expansion can be
According to the case, they have successfully adapted to the local market. This capability should be leveraged and potentially also used for other company projects, such as Japan.
Product diversification is a feasible way to obtain growth through new products. The company can use existing product knowledge to develop the brand into new lines to increase exposure and use similar technology to increase synergies. Leveraging off an existing well-known brand to a market that is familiar with the brand will also increase the possibility of success while maintaining lower marketing costs in
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| ST Strategies: * Make innovations for being over the potential competitors. * Use their financial position for acquire new technology.