Question 1
The issue here is should Wind Technology compete in the HVPS market?
Based on the estimated “attainable” market potential of ______________________, a one-half (0.5 percent) market share would correspond to ___________________$ sale? After subtracting production costs, what is the approximate profit available? _____________________ $
Based on this profit figure is it sufficient to offset the risk of entering a new market?
List the relative advantages and disadvantages of entering the HVPS market.
Advantages :
The firm could reap incremental revenues, with very little addition to fied costs.
Disadvantages :
2
Question 2
General Issue: which segments should the company target? How should the company and its
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_____________________ $
Based on this profit figure is it sufficient to offset the risk of entering a new market?
List the relative advantages and disadvantages of entering the HVPS market.
Advantages :
The firm could reap incremental revenues, with very little addition to fied costs.
Disadvantages :
2
Question 2
General Issue: which segments should the company target? How should the company and its products be positioned?
Keep in mind that the level of customization and system integration should be the primary basis for segmenting the market and selecting a target. Construct a matrix and answer the following two questions. Keep in mind that high level of customization and integration would be costly.
Which segment should Wind Technology pursue? _____________________________ What percent of this segment do they need to capture? _____________
Question No 3
Discuss what the positioning should be and why?
Question 1
The issue here is should Wind Technology compete in the HVPS market?
Based on the estimated “attainable” market potential of ______________________, a one-half (0.5 percent) market share would correspond to ___________________$ sale? After subtracting production costs, what is the approximate profit available? _____________________ $
Based on this profit figure is it sufficient to offset the risk of entering a new market?
List the relative advantages and disadvantages of entering the HVPS market.
Teams were able to introduce a new line of microcomputers in four different regions. All five teams were entering the market at the same time and they started with exactly the same amount of resources and knowledge of the market. There were three business segments in PC market. The higher priced Mercedes segment, included high performance computer for use in engineering and manufacturing applications. The medium priced, largest group of customers was the Workhorse segment, which was based on easy to use PC. The Traveler segment included practical computer to use while traveling and their customers were price sensitive. In quarter one, the teams were to establish their firm and set up their shop. Following, in quarter two, the teams dived in to test the market. In quarter three, the teams had to make some changes and decided on market expansion. In quarter four, they made choices to invest in the future. In quarter five, they had to expand their business strategies. In quarter six, they were able to adjust their firm’s strategies, tactics, study the market, review financials, evaluation production data if it was
Business risk evaluation – possible and moderate = medium business risk. The threat of new entrants and substitute products are very high, in addition to the high level of competition in the industry. Therefore, the business risk that MTI faces – losing customers due to lack of product differentiation, profit decrease due to increase in competition in the industry are likely possible to occur. In addition, the effects from new companies entering the industry will have a moderate effect on MTI’s revenue stream. As a conclusion, MTI faces medium business risk.
My business strategy is to purchase an existing tea and coffee shop which is located a mile away from where I work in Ashburn, Virginia, the business is call Sakasa tea and coffee. Sakasa is located next door to George Washington University and directly across is a chick fil a and a small hotel also it is right off a major highway so it has a great location. The reason the owner is selling is because of health issue and as a result, he cannot run the business the way it should. The business is making a profit of $2000.00 dollars a month on average after paying all expense. But I feel he can generate $5000.00 a month on average if he markets the business. The current
(+) With a longer time frame and/or lower target revenue amount, it will be a lot easier and realistic to achieve
Can this business be profitable? If not, why not? If yes, what needs to be done to achieve profitability?
Opportunities include huge market, no competition for at least three years, potential huge margin, good marketing strategy.
This strategy will lead you to a next platform and increase the growth. It is
We feel that she is both correct and incorrect in her logic and that ultimately segment hurdle rates are a better measure of return maximization. Hurdle rates are an internal management tool and can be set independent of WACC. We feel that the diversification of the company does help keep capital costs down which benefit the company. However, the hurdle rate is the driving factor of resource allocation. As more resources are shifted to the PS division, capital costs will begin to increase along side risk. In addition, external investors and analysts have more information than Helen is indicating. These analysts (36 following Teletech) and investors often look at companies by the markets they are in. They specifically look at the types of returns each of Teletech’s segments are producing and are projected to produce and compare those to others in the industry. This may be the main reason for Teletech’s stock price and P/E ratio not keeping up with others in the industry. Once again we feel that Teletech should institute segment specific hurdle rates.
* Although not as profitable, this positioning strategy will still make a profit and build brand equity.
Carefully evaluate the pros and cons of the segment markets and determine the market where the product has definite advantages over other
Applying our knowledge about Economics of Strategy, we know that there are different ways to create additional value:
From above statement it is clear that investment is worth it because market potential is much higher then the investment made to develop this product.
(1.98 is also reasonable select. Since there is no brand image or loyal customer, it's not big problem to price very low as long as defend VC. Profit is only $4000, but as long as the business continues it's better than nothing.)
λ It is a right time to gain more profits when this industry is booming.
I believe that the fundamentals and criteria of my strategic approach were pointing in the right direction. I assumed that the high growth potential market was for