Strategic Objectives And Resources Allocation Paper

1135 Words 5 Pages
Team Andrews (Jinyuan, Xin, Scarlett, Eric, Evan)

Strategic Objectives and Resources Allocation
Since our major objective is to increase market value, which means greater sales and a higher stock price, our company will adopt an integrated cost leadership/differentiation strategy in the simulation. This strategy will focus on low-end, traditional, and high-end segments, offering customers differentiated products with appealling prices. Based on our objectives, our company will allocate our resources to create a competitive advantage through building economic of scale and encouraging innovations.
Description of the Targed Markets
Traditional Market: The market is the second biggest market with a share of 32.4% in round zero.
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With an annual growth rate of 16.2%, it is a promising market in the future. The customer importance is obviously on the position of the product, to be specific, 43%. The ideal age of zero, which weights 29%, implies that the customers want to see a continuous improvement. We expect that the market will have less contributors because it requires intensive investments on R&D from the beginning. The advantage of this market is that the price (9%) does not have sinificant impact on the customers, which eliminate the chance of a price war comparing to the other …show more content…
Our company will develop the economies of scale that keeps our costs low, and a R&D competency that keeps designs fresh and exciting. Products will keep pace with the market, offering improved size and performance. The promotional and pricing strategies will generate higher demand while a well-designed financial strategy prevents us from borrowing emergency loans.
R&D Strategy
As for the low-end segments, the determining criterias are age and price, which indicates that the required R&D investment have to be well scheduled with lower frequency. For the traditional segment, size and performance have to be adjusted anually with a focus on meeting the ideal age of two years. Therefore, our products would be revised following the market trendencies. However, as the customers in the high-end segment pursues innovative products, our company would invest in R&D remarkably for designing attractive high-end products.

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