preview

Sabre Strategy Paper

Better Essays

Assessment of Final Market Position Regalto: We started with a strong position in the Alpha and Beta segment, and with an overall market share of 17.2%. From then on our market share declined, reaching a low of 6.9% in period 4. We launched new products in period 5, namely Fly, targeting the Delta segment and Spark, refocusing on the Alpha segment. This helped us increase our overall market share to 9.7% in period 5. The key takeaway from this decline is that we were not quick enough to launch R&D of new products that would exactly target specific customer segments. This allowed our competition (particularly Purple) to steal market share in segments (Alpha, Beta) where we originally had maximum penetration. Innovo: Our decisions for …show more content…

We accurately recognized a key strength lay in our inexpensive Regalto R&D capabilities. However, endowed with strong products with strong awareness, we were too passive early on in generating new products to take advantage of that strength. We also underestimated the speed with which competitors would come to market with products that eroded our market share, and as a result, were faced with large holding costs that ate into our Net Contribution, lowering our budget to turn from our ineffective passive strategy to a more aggressive R&D strategy. Halfway through the simulation, we had no pipeline for new products. We were again wrong when looking to Innovo to escape our Regalto tailspin. We hypothesized that by being one of a very few products in Innovo we could gain substantial market share and grow our Net Contribution. However, Sinatra was started too late and was underfunded. While it met certain segment needs well, our manufacturing cost was so high that we lost money on each unit sold. Obviously, our market share did nothing to help our Net Contribution, and the product launch was a failure. By Period 4, we recognized the growth/decline trajectory of each segment in Regalto and had developed a strong model for predicting product preference by segment, allowing us to optimize our R&D spend in Regalto to target our strongest competition and give us the biggest bang for

Get Access