GLO-BUS simulation.

Topics: Marketing, Price, Camera Pages: 6 (1434 words) Published: January 3, 2006
The D Company Final Presentation.

The D Company is a camera manufacturing company started 13 years ago by three young entrepreneurs. The head office of the company is located in San Jose California and has three manufacturing facilities at Seattle for USA, Canada and Latin America, Frankfurt for Europe and Africa and Taiwan for Asia Pacific.

Mission, Goals and Objectives:

The Mission of the company is to produce world-class cameras marketed all over the world, produced at most optimum cost using best manufacturing practices, giving value for money to its customers and maximizing yield for its investors.

The Strategic Goals of the company are:

1. To be among first five camera producers in a decade.

2. To manufacture world-class cameras with a P/Q ratio of at least 4 stars.

3. To maximize financial performance of the company as reflected by a good Earning Per Share (EPS), Return on Investments (ROI), Steady stock prices and a high credit rating.

The competitive strategy

It revolves around decisions pertaining to Research and Development, Component Usage, Manufacturing high performance cameras, wide Breadth of product line, Operations, work force compensation, Outsourcing, Pricing, Sales marketing and Finance decisions.

Functional Strategies:

Following functional strategies were deployed:

1. Product Design: For the product design we made decisions pertaining to Core components such as Image Resolution, Lens, and Memory. For Brand specific components we concentrated on Imaging, The shape and type of camera body, the software used and Accessories provided for both the entry level as well as multifeatured camera. We decided to provide 3 special features in entry-level camera and six special features in multifeatured camera. We introduced 2 models for entry-level camera and one model for multifeatured camera. Various Product design decisions are tabulated in table number 1.

2. Marketing Strategy: For marketing we decided for a mix of multi store chains, local camera shops as well as online retailers. We also kept a provision for Technical support and advertisement. The numbers of stores chains in each of the regions along with average price, special promos conducted, Discounts offered and warranty given are tabulated in Table no 2.

Results:

Following results are obtained from year 6 to 13.

Total Production cost and Unit Production Cost:

Table no 3 shows Total production cost as well as the unit production cost from year six to year 13. The average total production cost for Entry-level camera is $ 74656.38 while unit cost for entry-level camera is $121.69. The Total average cost of production for multiple features camera is $ 60923.25 while its unit production cost is $273.40. Chart no 1 shows the changes in the over all production cost of the cameras. The cost of Production of entry-level cameras has increased over last three years while the total cost of production of multiple features camera has fallen between years 7 to 10 but in last three years that too has shown an upward trend. The unit production cost of an entry-level camera has remained constant over the years while for multiple features there are fluctuations.

Competitive efforts made in last three years:

Table no. 4 shows the competitive efforts made in all the regions for last three years that's year 11 to year 13. There is decline in the technical support budget as well as in the advertising budget, which perhaps has lead to a poor performance in terms of market share of both entry level as well as multifeatured cameras. Market share of entry-level cameras is a ranging between 3. 8 % to 9.8% across all the regions, over years 11 to 13. The market share for multiple featured camera is slightly better.

Profit Generated:

The profit generated for entry-level cameras for the years six to thirteen are shown in Table no. 5 and for multifeature cameras in table no. 6. There is a decline in the profit generated by...
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