Optical Distortion, Inc. Case Analysis

2161 Words Apr 20th, 2013 9 Pages
Optical Distortion, Inc.
Case Analysis
Mengyuan(Myra) Xu
A20266661
2011-12-08

2011-12-05

MC 510 Optical Distortion, Inc. Case

Meangyuan (Myra) Xu

CONTENT

EXECUTIVE SUMMARY ...................................................................................................................... 2 INTRODUCTION .................................................................................................................................... 2 ANALYSIS ................................................................................................................................................. 2 A. SWOT Analysis ...............................................................................................................................
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Case

Meangyuan (Myra) Xu

Opportunity  Big market  No competition recently  Develop new product for the category B. Problem Identification 1. Limited financial resources 2. 3. Limited recognition or understanding of product

Threat  Farmers may not buy the lenses  No distributors can be involved  Debeaking is the traditional method

Possibility of low sale of product (i.e. Many farmers may not buy the lenses).

First, the financial resource tightness is one of the biggest impediments for the implementation of the plan. ODI set a five-year goal of capturing 50% of the market. It requires a sufficient finance backup. ODI’s fixed cost is amount to $760,000 (See Table 3). The total liabilities and equity of ODI is $275,025(See Case Table A Balance Sheet). Therefore, ODI has a limited bargain power on material supply and it is vulnerable for an increase in supply cost. Because of the issue of limited financial, ODI might be going to charge higher price in the beginning. With little knowledge about the advantages and potential profitability in the new products, a higher price is very likely to impair the interests of the farmers who want to install lenses on their chicken. The marketing of new products would be restrained greatly. Furthermore, the farmers would not be easily convinced to replace the traditional debeaking method by buying the new lenses. The problem is that ODI lens is still at the beginning stage with a very limited

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