Download file to see previous pages...
Determining a product’s lifecycle can enable a manager to make decisions of whether to invest more in a project or discontinue an operation. The three products HandHeld Corporation offers are X5, X6, and X7 devices. I noticed that the X7 product had weak sales. As a new CEO working for this business I seek out the advice of my top executives. Teamwork and cooperation are variables that improve the corporate culture and help firms achieve synergy. Synergy is achieved when the whole becomes more important than the sum of its parts (Schermerhorn & Osborn, Hunt, 2003, p.173). My top advisor indicated that the X7 product was in its growth stage. At that point I decided that discontinuing the product was not the right move because investing more in R&D could help increase the demand for the product.
I noticed that the market saturation of the product in the first year was only 3%. The X7 product line had negative profitability. The company lost nearly $8.5 million on the X7 this year. The costs were higher than the revenues. I wanted to increase the price by 25% to offset the -17% profitability deficiency, but since the customer care about price I decided to go another direction. The problem with the product was the existence of a high fixed cost of $35 million. If I was able to sell more units then I would have more total profits to offset fixed cost. I lowered the price of the product by 10%. I allocated 50% of the R&D budget to the X7 because it had the lowest market saturation out of the three products. The X5 which was the most saturated product received 20% of the R&D budget and the X6 received the remaining 30%. I increased the price of the X6 hand device by $25 because the customer’s are not worried about price. I decreased the price of the X5 by $25 in order to increase its demand. My score after round 1 was completed was a score of 558,204,736. The 2006 profits were $347,929,621. I was able to turn the X7 into a profitable
...Download file to see next pagesRead More
According to the research findings, it can, therefore, be said that B2B marketing strategy will require the organization to create new segments for the continuous sale of the digital products, which in this case, are the PDAs. Also, there should be a target of assigning the necessary resources to the segments that are being profitable.
It may be entering a mature stage where new R&D money would not be returned in revenue. Since the X5 appeals to the consumer base that shops for price, the strategy will involve cutting back on R&D spending on the X5 and lowering the price to garner more market share.
One such technology is the Personal Digital Assistant (PDA). It is a companion technology used by many people to guide them in their work and in their daily activities. This paper shall discuss the use of the PDA in
Success of a man in the modern world depends on his ability to retrieve information from the resources available. Especially for people who work in stressful, challenging and life saving professions like medical field, it
It was founded as a non profit organization which developed scientifically sound, practical and technical information and resources to advance science and regulation through the expertise of its members. It has its
The principal concept in this chapter is the act of faith from the men who had carried the paralyzed man. Mark 2:2 states that when Jesus was preaching the people had gathered, and there was no room left for movement.
Another observation is that Yahweh in particular instructs the religious leaders to adopt right kind of behavior. Research also confirms that Malachi 3:6-12 is based on God’s message which contains words of rebuke as the descendants of Jacob are
Assumptions have been made to intimate that Paul fronts particular leaders into office yet such suggestions are fundamentally flawed. Gene1 in his submissions intimates that Paul in the text seems to focus on a
1 Pages(250 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic PDA SIM for FREE!