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SLP Strategic Analysis of Product Sales

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SLP Case Open Systems Theory Introduction Joe Schmoe, the former VP of marketing, had felt that he was doing a good job of managing sales price, product development, and research allocations. Unfortunately for Joe nobody seem to agree with him who understood the product life cycle phases. Joe was content with treating each product as if they were in the same phase of their life cycle. Although not all products and services seem to strictly follow life cycle phases, the three models of tablet computers do in fact seem to follow the phases rather well. The X7 model for example was found to be in the market introduction stage. The other models, the X6 and the X5, were found to be in the growth stage and the maturity stage respectively. It is obvious through careful analysis that the three product lines should not be treated equally. Simulation Year One In the first year of the simulation, it is clear to see that the X7 has entered into the market recently given the fact that it is operating at a loss. The two other products are less discernible in regards to their development; however since they are on an upward slope they are either in the growth or maturity phases. The decision was made in the first year to devoted 60% of the R&D budget to the X7 since it is developing while holding the price constant. This returned a result that stated that the price was higher than the competitors which will have to be addressed in the next round. Also, it was noted that the X5

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