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Write a 5 page essay on BUS599.Download file to see previous pages... None of the products aims at dominating the tablet market according to the confidence level the VP has in the company’s product.
Write a 5 page essay on BUS599.
Download file to see previous pages...None of the products aims at dominating the tablet market according to the confidence level the VP has in the company’s product. The only problem with the tablet company is a proper strategy on segmentation of the market focusing on profitability and life cycle of the products. Product X5 As X5 is marketed to be a tablet that is meant for customers who are conscious of price, it denotes the company’s median product line. The product line is in performance and price terms. X5 tablets are priced 285 dollars with a rated performance of 1.02 beginning in 2012. Taking default development investment and research, the values maintain their level of steadiness. Product X5 2012 2013 2014 2015 Price $285 $285 $285 $285 performance 1.02 1.02 1.02 1.02 The table above shows how Joe performed. In its early product cycle, the performance of X5 is favorable against competition. Its sales steadily grow through 2012, although as the phase of maturity develops during the year 2013, sales fluctuate drastically, (Marketing Teacher, 2000). If there are no price cut benefits to fuel further demand, X5 will rapidly change into the advanced phases of its life cycle. X5 2012 2013 2014 2015 Sales 1,647,592 2,145,622 1,853,177 963,776 Revenue 469,563,809 611,502,211 528,155,442 274,676,048 Variable cost 469,563,809 321,843,269 277,976,548 144,566,341 Total cost 330,058,847 404,763,269 360,896,548 227,486,341 Profit 139,504,962 206,738,942 167,258,894 47,189,707 Product X6 The X6 makes Tablet development company the highest in the technology line focused on customers that look for a tablet that performs well and that ready to pay an amount for it. X6 tablets are priced 430 dollars with a rated performance of 1.02 beginning in 2012. In the absence of enough R and D to maintain its edge of competitive technology, the performance rating deteriorates every subsequent year. Product X6 2012 2013 2014 2015 Price $430 $430 $430 $430 performance 1.02 1.02 1.02 1.02 The X6 benefit from strong sales inflowing 2012, the central of the introduction phase. The growth, nevertheless, tables into 2013, after which it fluctuates sharply via 2014. With X6 performance falling off to 1, the competitive advantage quickly degrades. It does not clearly receive the R and D investment which is required to give service to its targeted consumer. The table below shows the original promise of introduction phase of X6 that do not survive its transformation against competition. X6 2012 2013 2014 2015 Sales 1,288,999 2,134,931 2,364,061 1,118,142 Revenue 554,269,513 918,020,206 480,801,048 Variable cost 354,474,689 587,105,945 650,116,782 307,489,042 Total cost 400,134,689 632,765,945 695,776,782 353,149,042 Profit 154,134,825 285,254,260 320,769,459 127,652,006 X7 product The X7 stands for Tablets Development Company’s product contribution for the summative market. It does not either focus on price point or performance advantage. This tablet is of a mature product market where consumers look for a value established on a steadiness between price and required performance. Being in the category that is emerging, X7 starts 2012 at 190 dollars with a performance level of 0.97. The combination shows the product immaturity relative to the strategy that it fits in. The investment of R&.D in X7 product increases the rate of performance throughout the considered time horizon, although never to a level needed to match its competition.
