Introduction to the Report Our team Group E of Industry 1 was consisted of following three members: 1. Nirius Irani 2. Masoud Alawi 3. Claudio Ramirez I would not say we fared well in our BSG game and there were multiple reasons that contributed to our final rank. To be honest we could not understand the game at all and when we started to understand it, the game had been over for us. We analysed our performance and below are some of our reflections and lessons learnt. Our strategy was to keep the cost low but we did not plan properly to meet the increased forecasted demands that made us to stand at the last position in the competition. Our Strategy (Year 11 – Year 16) During the initial 6 years we were still trying to …show more content…
In this phase we became more selective to the market we were targeting. Unfortunately this came a little to late as we had to start everything from scratch. Wholesale Market In year 17 we totally changed our strategy. This time we were targeting an entirely different market. We brought down our models offered from 200 to 150, furthermore we raised our average S/Q rating by almost 40%. To increase the S/Q rating we had to dramatically invest in TQM and enhanced features. This did slightly did improve over market share but at the same time brought our net revenue down and we found ourselves struggling with cash towards the year end. Private Label During the second half of our trading period we focussed massively on the private label market and found our niche there. We had realized that the minimum cost of the product wins the market share so we started experimenting with S/Q Ratings and percentage of superior materials to come up with the best product with the least cost price. Adding minimum profit margin to the cost price we were able to seize a massive chunk of the private label market. Attached are a few snapshot highlighting our success in that market. Our Strategy (Year 17 – Year 20) We put a lot of effort into the Private Label market. Undoubtedly we did very well in that market, but that unfortunately diverted us from the
the same time trying to stick with our bestcost strategy. This year we also decided to cut back
Over the past two weeks I have researched various scholarly journal entries and various articles. I was able to find ways for SHLD to increase their bargaining power. This includes introducing additional private labeled products. SHLD already provides private label products, but allowing additional private labeled products can yield higher profit margins. Furthermore, I researched both the importance of an accurate mission statement and the benefits of surveying clientele. After researching how effective a mission statement can be towards an organization, I began to focus on how to modify SHLD’s mission statement. The modification will keep SHLD on a path to success
Strategically, Company G seemed to rely solely on volume sales with a low price point in all markets: Internet, wholesale, and private label. Their “basis for competitive advantage is lower overall costs than competitors…finding ways to drive costs out of their businesses and still provide a product…that buyers find acceptable.” (Thompson, Peteraf, Gamble, & Strickland, 2012) With an SQ rating of 5, quality was not a distinguishing factor; low costs were.
The best possible way to sell our bikes at a higher price than normal was to advertise a lot. All the firms began at the same place, and the only way to differentiate our bike from our competitors is to raise our company name in the market and capture the
Over the past five years the private label over-the-counter (OTC) market is growing tremendously. The private label sector has an image of national brands and provides quality and innovation at a low cost price. Benefits are provided for retailers, consumers, and manufacturers to the point that private label healthcare growth should exceed solidly forever.
Conversely, the strategy to serve solely to the American market, proved to be a short-lived one. As the company’s revenue started to decline by year 5 (see image), the inability of the A-Team to be price-competitive became evident. The strategy to focus solely on the American market proved to limit the A-Team’s capability of achieving economies of scales and remain price-competitive. Unfortunately, by the time this deficiency was observed, the A-Team did not have the financial resources or sufficient time to pivot its original strategy and expand geographically.
The industry witnessed several industry level stock outs, because of low production capacities. Ideally most should have been made of the situation. We should have seen the opportunities and worked to achieve way beyond our set goals.
In marketing, as a cost leader with product lifestyle focus, our strategy was to produce products of quality and durability at the lowest price possible in order to gain a quick competitive advantage in the marketplace while keeping internal costs to a minimum. Over the years, our budgets gradually increased. Price for Traditional segment diverse according to the frequency of R&D. Low-End prices were placed low since customers are highly price sensitive in Low segment. Products price in High-end, Performance and Size segment were placed relatively high since we innovated and updated the products by R&D each year to meet customer demands. Andrews continued to maintain a premium pricing structure in the High-End, Traditional,
I have a Read and Sign in the A2 BDO Officer for your information and awareness, as a team I will expect from every member of the BDA BDL program to present yourself in a professional and respectful manner. Please be careful with our conversation content and how we communicate to each other and other officers and be aware where you are located when you have a private or personal conversation with others. Sometime what is innocent to you will be offensive to others and even more when there are third parties around us. If you observe your partner getting out of line please be sure to get his or her attention and back each other. I don’t want any member of our team to be accusing of Sexual Harassment. Any question and concern please don’t hesitate
The industry within which Hansson Private Label exists is a very competitive and volatile one. It is dominated by two types of firms, namely, Branded and Private Labels. Tucker Hansson operates as a private label firm. Private Label firms are an emerging market which is competitive based on its ability to have a lower price than its rivals. This market has experienced growth primarily because of this affordability. However this growth would be regarded as organic.
To understand the role of H-E-B’s Own Brands, we need to understand the role of private labels to a retail store. Retailers manufacture carry private brands since retail gross margins in the private labels are relatively high. Retailers are able to realize cost advantages since they do not have additional advertising and distribution costs associated with private labels. In addition to increasing profits, store brands help to attract and retain customers. Retailers however need the critical procurement revenue from national brands for ad space and displays on stores and hence need to maintain a balance between their Own Brands and national brands.
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 Big 3 had high advertising to sales ratios of 10-14%, also deterring entry, because average first year advertising cost for a new brand was over $20 million. We can conclude that total costs related to producing private label products are lower than new branded products. Private label products can offer greater margins to grocers and still sell at lower prices. They have a considerable competitive cost advantage over the new branded products.
This strategy is “the best of both worlds”. Low prices and great quality. It aims at giving consumers more value for their money by offering high end products quality at a lower cost than its competitors. This strategy is a hybrid strategy, combining low cost and differentiation strategy to produce a highly unique product. The uniqueness of the product will ensure that the organisations competitive advantage is maintained.
General Mills, as one of the Big Three companies that focused on diversification of consumer goods on cereal division, restaurant chains and packaged consumer foods. In 1994, the cereal industry was profitable and had been one of the most concentrated industries overall historically, and the big Three company had a dominant position in this industry. However, the problem was although the high profitability attracted fewer entry company due to the high entry barrier restrained by joint monopoly of the Big Three, they were facing the threat of private label companies which grew fast in market share by sales and volume. Therefore, what is General Mills strategy to increase revenue while dealing with the threat of private labels. This is a critical issue because General Mills need measure the trade-offs among strategies, and this determines whether General Mills would still be one of the top players in terms of market shares in the industry.