Strategic Objectives And Resources Allocation Paper
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. …show more content…
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.
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.