8. Our Strategic Vision
• Building a loyal customer base by providing quality entry-
level cameras at a lower price than competitors.
• Providing consumers with excellent quality multi-featured
cameras, that satisfy their requirements.
• Maximizing shareholders value.
• Investing in long-term employee
benefits, innovative technology,
productivity increase and R&D.
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10. Entry Level Strategy
• The company employed a « global low cost leadership »
strategy from Year 6 until Year 12 meaning that:
– Offering a low cost strategy advantage for a company means
you can develop, manufacture, and distribute products more
efficiently than competitors.
– Having lower costs than competitors, lower prices, lower
quality.
– A continuous search for cost reduction without sacrificing
acceptable quality and essential features.
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11. Multi Featured Strategy
• The company employed a « Global Best Cost
Strategy » from Year 6 until Year 12
meaning :
– Focus towards customers who are value-
conscious and are willing to pay money in
exchange of a good that has upscale features.
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12. Production
• Our company’s production line made use of expansions,
Overtime and outsourcing.
• Expanded 3 times during decision period
• Hired temporary PATs for 3rd quarter production and laid off
in 4th quarter.
• Maximized overtime and outsourced the rest.
• PATs were compensated less than competitors to keep costs
down.
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13. Assembly
• Our main focus on assembly was not to get sold
out so we could capture as much market share as
possible.
• Took advantage of 10% extra margin.
• Production also depend on the following factors
– Exchange rate profit or loss per region
– Operating profit per unit
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14. Financial Strategy.
• Our financial strategy was formulated to eventually re-purchase most of
our company’s stocks from our stockholders, that way, increasing the
value of our company.
• Our stock purchase was mostly financed through debt but we repaid a
huge debt after our 4th quarter sales to maintain a strong credit rating.
• We issued dividends every year to reward our shareholders after a
successful business year. The dividend were usually dependent on our
performance that year, so there were increases and decreases.
• Given our current financial situation, there would have been a dividends
paid the upcoming year, however they would have been the same or
lower than the previous year.
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15. Entry – Level Camera
• Company E and B
Competitors
After these 2 companies had implemented a
successful strategy to corner the market
share for the entry level camera, we
decided to formulate a strategy similar to
their which was a high quality-low price
product.
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16. Multi-feature Camera
Competitors
• Company E and B
These companies managed to implement the
same strategy for their entry – level and multi –
feature cameras. Because of that successful
strategy, they performed way beyond
expectation and acquired majority of the market
share and advantage.
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17. Take Over strategy
• We formulated a strategy to respond to the one being used by our
leading competitors. Since they had the same strategy for their
entry level and Multi-feature, we just needed to create one to
counter their strategy. We responded by changing the price of our
products to match the ratio to the P/Q rating as those other
companies had done. i.e., whatever their price was based on the P/
Q rating of their camera, we adjusted our price based on our P/Q
rating just so we could provide the lowest price even our P/Q rating
was less than theirs.
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18. Take Over Strategy (Contd.)
• Our strategy seemed to be successful, however, we
only implemented it in the final decision rounds, so
even though we had a large boost in performance that
year, it wasn’t enough to be placed in the top 3
companies. But if the same strategy was implemented
in the following year, there would’ve been an even
more significant boost in performance.
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19. Future Actions
• Will pay attention towards the quality (not lowering it
extremely) and keeping the brand reputation.
• Come up with more innovative and technological methods,
by means of investing in R&D.
• Address the high labor cost issues.
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20. Lessons Learned
• Always keep an eye on your rivals actions.
(never relax in the game of business)
• Investing in marketing innovation,
and technical support always
pays off.
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21. Lessons…
• Better employee compensation lowers the
warranty claims and production cost.
• Image Rating plays a great role in shaping
your position in the market.
• Following ethical business standards is more
important than just making profits.
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22. Lessons…
•Do not over produce.
•Create a strategy and follow, make necessary
adjustments according to competition.
•Makes decisions by strategy not by projection
numbers.
•Use Competitive Intelligence Report to locate specific
issues and tackle.
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