Team Andrews Memo 1
CAPSIM MEMO
To: Alia Crocker
From: Team Andrews
Date: March 30th, 2015
Subject: Initial Strategy
RESEARCH AND DEVELOPMENT
Our strategy is to focus on products Adam (High end), Aft (Performance), and Agape (Size) because these products have the greatest segment growth rates according to the industry reports. This strategy is known as the “Niche Differentiator”. In line with this strategy, we expect to gain a competitive advantage by continually increasing product performance and decreasing product size. Products Adam, Aft, and Agape will be priced on the higher end in order to keep our products up to date and innovative.
We first looked at the industry report to determine what our customers value most in each specific segment. For example, for customers in the High end segment (product Adam) performance and size are the most important (43% importance). According to the conditions report the ideal position for performance is 8.9 and the ideal size 11. We adjusted pfmn from 8 to 9.2 and size from 12 to 10.8.
We then found that customers in the Performance segment (product Aft) value MTBF the most (with MBTF having 43% importance). For round 1 the ideal MTBF is 22,000-27,000. Keeping in line with this, we set MTBF for this product to 27000.
For customers in the size segment (product Agape), performance and size are the most important (43% importance). For round 1, the ideal performance is 4.0 and ideal size is 10.6. Originally, performance was set at 4 and we changed this to 4.7 and size was set at 11 and we changed this to 9.6.
In total, we invested $2.8 million into research and development. Although we invested more than the suggested $1 million, we believe this investment will be beneficial for future rounds, and make our products more attractive to potential buyers.
MARKETING
Overall, our marketing strategy was to accurately forecast the relative demands for each product based on projected sales, and industry conditions. In keeping with our niche
To: Alia Crocker
From: Team Andrews
Date: March 30th, 2015
Subject: Initial Strategy
RESEARCH AND DEVELOPMENT
Our strategy is to focus on products Adam (High end), Aft (Performance), and Agape (Size) because these products have the greatest segment growth rates according to the industry reports. This strategy is known as the “Niche Differentiator”. In line with this strategy, we expect to gain a competitive advantage by continually increasing product performance and decreasing product size. Products Adam, Aft, and Agape will be priced on the higher end in order to keep our products up to date and innovative.
We first looked at the industry report to determine what our customers value most in each specific segment. For example, for customers in the High end segment (product Adam) performance and size are the most important (43% importance). According to the conditions report the ideal position for performance is 8.9 and the ideal size 11. We adjusted pfmn from 8 to 9.2 and size from 12 to 10.8.
We then found that customers in the Performance segment (product Aft) value MTBF the most (with MBTF having 43% importance). For round 1 the ideal MTBF is 22,000-27,000. Keeping in line with this, we set MTBF for this product to 27000.
For customers in the size segment (product Agape), performance and size are the most important (43% importance). For round 1, the ideal performance is 4.0 and ideal size is 10.6. Originally, performance was set at 4 and we changed this to 4.7 and size was set at 11 and we changed this to 9.6.
In total, we invested $2.8 million into research and development. Although we invested more than the suggested $1 million, we believe this investment will be beneficial for future rounds, and make our products more attractive to potential buyers.
MARKETING
Overall, our marketing strategy was to accurately forecast the relative demands for each product based on projected sales, and industry conditions. In keeping with our niche