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SLP 1 - Strategic Review Simulation - Essay Example

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To: CEO, Clipboard Tablet Co From: VP Marketing, Clipboard Tablet Co Date: August 19, 2012 Subject: SLP 1 - Strategic Review Simulation The objective of this annotation is to elaborate the adjudication related to pricing, R&D expenditure and discontinuation strategies along with the adjudication accomplished by Joe Schmoe regarding strategies pertaining to three tablet models manufactured by the company…
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SLP 1 - Strategic Review Simulation
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In order to understand the outcome of the strategies adopted by Schmoe during his tenure it is important to gain insight into how strategies can help companies flourish and how each element of strategy making can affect the possible outcomes of the business (Henry, 2008). Clipboard Tablet Co is observed to be the presently manufacturing computer tablets manufacturing and advertising different tablet models namely X5, X6 and X7 as their recent brands in the market. It has been observed that tablet X5 is proponed by the customer’s who are price conscious.

The second model X6 is proponed by the customers who are quality conscious. However the third model X7 is proponed by those customers who give accent to price as well as quality of the product for purchasing. The availability of the three different models by the company is as follows: X5 for seven years ending 2015, X6 for last six years, and X7 for five years till the completion of 2015. Beforehand the company decided the financial value of these brands as: X5 for $265, X6 for $420 and X7 for $195 respectively.

However, it was observed that the brands X5 and X6 were profitable in the duration between 2010 and 2015 with an increase in the market value. On the other side the brand X7 was unprofitable and attain loss till 2013 afore achieving the profit in 2014 and 2015. Financial review The marketing of X5 in was equivalent to 968,979 in 2011 and 1,647,592 in 2012 that had an increment up to 70%. The interest that was accomplished from the marketing also had an increment from 276,159,075 in 2011 to 469,563,809 in 2012 which up to 70%.

It clearly indicates the good performance of brand with an elevation in the financial value as well as in the interest. An increase in the profit of this brand is observed again up to 30% during 2013 on account of the first time customers who availed 86% of total sale volume. Though after 2013 the marketing of X5 started to abate with an abated interest while in 2014 a reverse growth is observed up to 14% and up to 48% in 2015. The marketing value from the first time customers when compared between 2015 and 2012 reveals that it had increased up to 66% in 2012 while abated up to 72% in 2015.

However the repeat purchase elevates only up to 26% in 2015 in comparison with a high increase of 96% in 2012. Financially, the prices for manufacturing of X5 elevated by 42% and 23% in 2012 and 2013 respectively but it had abated by 19% and 37% in 2014 and 2015 respectively. The price of research and development had an incision of 33% in 2012 and remains constant for many years due to which the first time customers lost their interest. In 2011, the worth of X5 was found to be 16% which increased up to 30% in 2012 and 34% in 2013 which reveals the good performance of the company with high marketing.

Conclusively, the overall the interest is found to descend in 2014 with 32% while in 2015 it remains only 17%. The brand of X6 began laboriously in 2011 with an acquisition of increment in marketing up to 129% in 2012 comparatively in 2011. The growth in first time custom

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