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
We decided to increase Allround’s pricing by no more than $0.10 per period with a final price of $5.70. As it relates to Allround + we took a bigger risk, increasing price by $0.75 with a final pricing of $6.05. The results did not prove to be as favorable as we would have liked. Although sales increased, our net income, stocks and share of manufacturer sales fluctuated throughout the simulation. Some of the decisions made did not always prove favorable, for our team, Allround went from $102.1M to $148.6M in unit sales and $355.3M to $537.8M in sales. (See figure 1). Allround + went from $7.4M to $38.6M in unit sales and grew from $24.2 to $109.8M in
Following the emergence of e-readers, new entrants offered variations similar to the Kindle Fire (Exhibit 1). Apple’s iPad was a major success and dominated the tablet market for its multipurpose and feature rich device. Both Amazon and Apple had
In today’s society, consumers are looking for a product that is willing to do it all. A product must fit both professional and personal needs. There are many products out there but three of the most common include, Apple’s Macbook Pro, Apple’s Iphone 6, and Microsoft’s Surface Pro 3. All three of these devices have their advantages and disadvantages, but the one I feel is the greatest buy is the Mac Book Pro by Apple. It is important to compare the similarities and difference of all three of the popular devices.
The short product life cycle in this industry requires competitors to continuously evolve. This continual innovation is difficult for new entrants to achieve. Also, existing products, such as Apple’s iPhone, have built brand loyalty and associated switching costs for consumers, which pose as barriers to entry for new competitors.
Since quarter one was the first quarter of this simulation, I was unaware of how difficult it was going to be to make all the different decisions. Firstly, I had to choose a Company name. Because I was selling computers, I thought that the name “Dev-Tech” was a perfect fit being that this simulation was about development and technology. Next, I had to choose a target segment. I knew going into this simulation that it would be better to invest in the more expensive goods as it would benefit me in the end. The segment that didn’t care about price was Mercedes, so that is the segment that I made my first priority.
The second reason was due to the dramatically increased sales of the X7. As the graphs display, the X6 accelerated greatly in terms of revenue and profit through 2013 and then began a steady and definite decline once reaching market saturation. Revenue and profit for the X7 were drastically different as compared to previous simulations, beginning to increase in 2014 and 2015,and setting the stage for sustained revenue and profits in the future time period. The X5 was relatively unchanged from previous simulations since I left the pricing alone due to the tablet having been on the market for several years already.
Tommy Jones begged, pleaded, and hoped beyond hope for that new touch screen phone that would immediately move him up the social ranks at his school. His wish was granted on Christmas morning. He was rewarded with that sleek, black phone with 4G capabilities. Two months later the next phone in that series is out; it is almost an exact clone of the first model with the most moderate changes, and suddenly Tommy’s phone is obsolete. There was no great improvement when compared to the old model, no; the corporation knows that it will sell, no matter how small the improvement. This model of constant obsolescence has become the norm in the economy today; companies reap profits with mediocre products, completely uncaring of the consumers. To put
After analyzing the results from the previous quarter, it was determined that the prices set for each segment were not sufficient. Product sales priority were also not properly adjusted. With the R&D investments, sales priorities needed to be changed for the main focus to become the most profitable market segments. Prices were not competitive which in turned decreased revenue, market share, and profitability. To become more competitive we altered the prices in each market segment. The Workhorse product was the first to change, the price was lowered to $2500 in an attempt to increase sales; at this price Team 4 was still making a profit on this product, as well as making the price much more competitive. The Workhorse sales priority was also lowered to 3rd in Americas and 4th in APAC and EMEA. This product was not selling as well as we had hoped, and was no longer as profitable as it once was which led to this decision. Next, the Innovator product’s price was adjusted; this involved a price increase to $4100. This price was adjusted to include the new
The purpose of this session long project is to run a simulation over an 18 year period and analyze the possible outcomes during the simulation. We will have 4 decision points; Decision 1: For years 2008 – 2012, Decision 2: For years 2013 – 2017, Decision 3: For years 2018 -2022 and Decision 4: for years 2023 – 2025. With each decision point, we will look how the simulation impacted profits, market share and module price.
These results are obviously disappointing. The weakness of CVP analysis is that it does not estimated demand responses to pricing changes. In this situation, the Excel sheet made the claim and revenue would be maximized at a $70 price point for the X7, and that was not the case even though sales were over 12 million units in that final year.
The X6 is at the beginning of the growth stage of the life cycle. This means that sales should be accelerating still, and that there is sufficient room for future growth. The X7 is in the introductory stage of the life cycle. Almost all of the potential market share for this product is in the future. Over the course of the next few years, these two products have the strongest growth potential, the X7 especially. In addition, R&D expenditures in these products will have more results than for the X5, because there are more potential future sales available.
Apple has always been something of a trendsetter in the tech space. Its product history since Steve Jobs’s return in 1997 gives us a solid list of examples to choose from, from its very first iPod, to Apple’s PowerBook (and later MacBook) lines, to the iPhone and the iPad. Apple’s history is dominated by products that existed before Apple had a crack at them - but it was Apple who simplified them, made them appealing on a much wider scale, and ultimately made them objects of desire for the masses.
This report will identify the positioning of Apple’s notebook product line ‘MacBook’ to its relative competition by the use of marketing concepts such as; segmentation marketing, target marketing, buyer behaviour, product strategy and how the company has enhanced the product over the years.
The product research and development field is a basic yet crucial requirement to survive in the consumer electronic industry. This is also mainly the reason that propels Apple Inc. to invest in the particular field, allowing Apple products to be at the top of new innovative products. Technology has been making huge leaps in improvement and the market has grown in size which leads to even more competitors, thus involving technical changes and reducing the product life cycle significantly. This enables Apple Inc. to constantly present newer products and therefore lead the market.
The commercial of Samsung Electronics’ Water- less washing Machine shows Samsung Electronics employing the core components of the marketing mix to achieve its marketing objectives. The interaction between the price, product, place and promotion has far reaching effects on the company’s long term strategy. This relates to how Samsung segments, targets and positions (STPs) itself to tap into a sizeable customer base for the water less washing machine. Samsung invests Rs.5million in the water less washing machine’s innovation and Rs. 2million in television and online promotion of the product to drive profitability and sales volumes. Additionally the company is targeting loyal middle and upper class customers in Pakistan while positioning the less energy- water consuming and moderately high priced (price skimming) washing machine as a strong brand in the home appliances market of urban populations. Furthermore, the company segments the market according to demographics like education, age and gender (Khan 29).