Running Head: TEAM DISTINGUISHED IMAGES ANALYSIS
Strategic Analysis
Analysis 2
The Glo-Bus application was a very challenging and intriguing exercise.
Starting out in the simulation, our team was positioned well with a good strategy and several strengths in our first couple of years. Despite this strong start, we struggled to adapt to the changing market conditions and adapting our strategy accordingly. Ultimately, we gained several new insights that should help us each in our future strategy formation and execution efforts.
Strategy
As a co-management team we quickly formulated our plan of attack.
We decided to plan weekly phone conference with all the managers of
Distinguished Images. We felt that this would be the most
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We continued to see that our competitors had stronger warranty programs. In Year 7 we chose not to increase our warranty programs, adhering to the strategy we outlined in Year 6.
Years 8 & 9 was the beginning of our downward trend. We tried to continue our action plan to be the high quality, low cost provider of digital cameras. However, especially after Year 9, we had to begin to be reactive to the market conditions. We were losing ground and needed to find a way to re-gain it. We decided that “a sound way to deal with turbulent market
Analysis 5 conditions is to try to lead change with proactive strategic moves while at the same time trying to anticipate and prepare for upcoming changes and being quick to react to unexpected developments” (Thompson, Strickland &
Gamble, 2008, p.242).
We recognized in Years 8 & 9 that we were lacking in our warranty period for both models and our tech support wasn’t sufficient as compared to that of our rivals. This caused us to extend our warranty periods and bolster tech support in these years. Our competitors were also trying to provide a differentiated product in order to increase their market share.
We started to see our competitors increase their products PQ ratings, specifically in the multi-level cameras, as well as, continuing to strengthen their warranties. Thinking back, it seems that we have violated one of
Thompson, Strickland and Gamble’s “10 Commandments for Crafting
the higher costs that came with making a higher quality camera we increased its price. We based
The Andrews management team has opted to pursue the strategy of differentiator with a product life cycle focus. This strategy involves the creation of products with excellent design in terms of size and performance (on the perceptual map), and MTBF. Significant investment in awareness and accessibility, and development of proficiency in the research and development sector is also central to this business strategy. In order to compensate for these high initial investments, our product prices will be relatively high; however it is believed that our customers will be drawn to our product due to high awareness and due to the superior quality of our sensors. Our released products will need to be manipulated according to the changes in expectations of the marketplace by producing smaller and faster products, according to the expected ideal size and performance of the sensors in future years. In addition, our company must invest in other important activities such as; total quality management (TQM), marketing, and human resources (HR) in order to
As a hot deal in a hot market, competition among venture capital (VC) firms had driven the pre-money valuation from $17 million to $27 million, with a post-money close at $35 million. Although the Series C round had been slated for November/December 2000, Papa had noted the increasingly difficult financing environment and managed to make his funds last for 18 months, rather than the anticipated 12. The company had hit every milestone on its original plan. Its product had been installed at several marquee customers, including Tower Records and one of the world’s largest asset management companies, and it was about to be in trials at Putnam and a major investment bank—Dean Stanley Goldman Credit Partners (DSGCP). A veritable who’s who of potential customers was seriously considering the technology. Papa expected that $7 million would take his company to break-even,
We evaluated our company’s position in the industry, and found ourselves in an excellent starting position to further develop our products and match them to the industry’s needs. Our market share is adequate and we can advance further with our strategy improve and reposition our products in the coming years. We have underutilized capacity, which we intend to improve, while increasing automation to reduce costs. We have plans to improve our promotion to improve product awareness and with the appropriate product lines we will increase price to improve margins and better align our high-end product image. Our current financial position is optimistic, showing our leverage (Assets/Equity) at 2.0, when our goal is to maintain 1.5-2.0 overall. By utilizing the analysis tools we are learning what elements are driving demand, how to effectively tailor our products through R&D, how best to adjust our marketing and pricing, while lowering input costs, in order to improve margins and to ensure our stakeholders are all satisfied.
The energies of this report shall be directed towards the documentation, explanation and analysis of our group strategy in playing the Globus Business Strategy Game, and also the outcomes of our decisions. In doing so, aspects that I will attempt to analyse and explain our decisions relate to production design, marketing, assembly (for both entry-level and multi-featured cameras), compensation and labour, discount bids, corporate citizenship, finance and cash flow.
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.
The Glo-bus simulation was a unique experience that all students should participate in order to manage a business in a competitive industry. From a strategic perspective, Do you even lift's initial goal was to make the highest profits and return on equity in both markets by offering a quality entry level and multi featured camera at a reasonable price throughout the game. Despite the sluggish start, we created a big shock in the industry half way through the simulation which quickly transcended our company to become one of the top companies in camera industry.
Time: Frequent changes were allowed to be made in in-house prototype shop during three to five design cycles that made the tension of lead time in line with their corporate strategy – to be the leader in high-end
In 2002, Leitax had suffered through poor planning of 3 camera models: the launch of one camera delayed (cost: $19.5 million), another outsold its inventory (costs: $4.5million) and a third model reported sluggish sales ($2.5million). To compensate, Leitax extended the life of an existing model and made a mad scramble to find product and customers but the most costumers preferred to wait for the delayed camera. These
Gainesboro had possessed the capacity to keep up its position as an industry pioneer in the CAD/CAM showcase. The case shows how expanded market passage and rivalry can make a difficult for organizations and put descending weight on profit. The outcome is that if an organization like Gainesboro is to have a battling chance they should be original and concocted items that test
Both partners were mutually agreeable on the Electronic Integration and the Inventory issues. We both agreed to have 100% Electronic Integration and have a 3 week inventory to minimize costs to both sides. The next issue that was brought up was the quality and the concerns were raised about the 1000/1000000 i.e. 1/1000 failures. We agreed that this needed to be addressed to a level of 100ppm so that the
In my March 6 memo, I discussed the need for Kodak to revamp its core strategy and regain popularity. Eastman Kodak has been the leader of photography and printing products for nearly 130 years. Over the last few years Kodak has been in distress due to its poor fundamental shift into the digital age. Lack of strategic creativity led Kodak to misunderstand the industry in which it was operating. This lack of strategic creativity was costly for Kodak.
In Figure 1.0 – Scenario 1, I have provided a secret shop here in Overland Park. This conversation took place at the Academy. The reason for this scenarios is because I rolled out a brand new training program for all outdoor retailers in order to push product knowledge to the employee level. Secondly Academy pick up my action camera to compete with the industry leader. Currently GoPro is being marketed to the marine fishing segment and the Garmin is
We perhaps erred on the product design providing far too many features in the entry-level camera resulting in an increased cost of manufacturing. We did fairly well in terms of global prices but fared badly in P / Q ratings. The average Price for an entry-level camera in the global market is ranging from 150 - 175
Olympus Optical Company has come a long way in regards to reducing cost and recapturing market share but they are continuing to face problems. In addition to cost issues Olympus is also facing flexibility issues, such as shorter product life cycles and an increasing number of products needed to satisfy customers.