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Marketing Strategy And Changes Of Foto Inc.

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Strategy and Changes
The primary focus of Foto Inc. (“Foto”) has always been to develop a winning competitive strategy. Foto’s strategy focused on growing the market share and capitalizing on the growing consumer interest in digital cameras. Such an effective strategy kept the company in the ranks of the industry leaders and allowed Foto to have consistent positive Times-Interest-Earned for each quarter, a positive ROE, a positive EPS, as well as maintain a Class B or better Credit rating. Foto, Inc. has an outstanding image indicator as well. On the contrary, the company had the poorest market share in North America at one point when compared to competitors, and has consistently struggled with market share in Latin America.
The company planned to increase its EPS by 8% annually through year 10 and by 4% annually after that. It planned to maintain an ROE of 15% or more annually, maintain a B+ or higher credit rating, and achieve an image rating of 70 or higher. The company consistently focused on maintaining profitability at each year end and maintaining stable to significant growth in each of its product types. The goal was not to incur debt for operations in any quarter other than the third quarter, which was necessary to meet increased production demands and cost of goods. Foto wanted to grow annually by 15%, and double in size in five years. By the end of the simulation exercise, the company hoped to have an increase of 20% in total profits. Total profits for
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