Essay on Yorktown Tech Case Study

925 Words Jul 15th, 2012 4 Pages
Yorktown Technologies Case Analysis
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Case Recap Yorktown Technologies is a fairly new company that is marketing and introducing GloFish into the market. In 2002 Yorktown raised $500,000 fro investors under the projection that it would have $4,000,000 in profits in 2004. Sadly the company only had $500,000 in revenues and had an outstanding $620,000 in expenses leaving the company $120,000 in the red (Roger A. Kerin, 2010). Alan Blake of Yorktown Technologies is searching for what to tell the board of directors in the next board meeting. Major changes are needed in order for Yorktown to turn around and become profitable. Problem Identification The largest problem that plagues Yorktown is negative media attention
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Other avenues for marketing and sales must be pursued and analyzed in order to increase sales and revenues. Blake has been considering marketing the product on ebay and through direct internet sales to the consumer. Pricing has become a serious issue in this consideration. Competitors are selling similar products for far less than Yorktown can provide their product for. The consideration for international sales has been discussed, along with the possibility of regulating the illegal infringement of the patent through sterilization of the fish prior to sales in some areas that are difficult to regulate due to the international nature of the sales. Identifying the Root Problem Components The first problem that is plaguing Yorktown is the difficult of cost effective distribution and marketing. In the US, Yorktown has come under fire due to the genetically engineered nature of the fish. This makes the pricing of the product difficult, because the price is higher than the consumer has been willing to pay. The company has had steady sales since its inception several years ago, but is still far below projected revenues. Pricing is another problem that haunts Yorktown. Competitors are selling similar fish for far below the hard bottom on Yorktown’s product. Yorktown cannot make a profit while effectively competing with the competition’s product. The three major distributors of fish, Wal-Mart,
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