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DIGBY
July 15, 2013
Lucy Hesse Jeremy Linn Shea Kirsop
Lucinda SparksTrent Speaker
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Agenda
I. Sensor Industry OverviewII. Strategy
a. Goals and ExpectationsIII. Competitive AnalysisIV. What We Could ImproveV. What We Did RightVI. Overall Performance & Limitations
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Sensor Industry Overview
• Six companies (Identical Competitors)• Andrews• Baldwin• Chester• Digby• Erie• Ferris
• Sensors are sold to multiple clients across various industries
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The Digby StrategyBroad Differentiator:
• Maintaining a presence in every market• Distinguishing products with excellent design,
high awareness and easy accessibility• R&D keeps designs fresh and exciting• Products keep pace with the market• Improved size and performance• Prices will be above average• Capacity will be expanded with higher demand
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Goals & Expectations
Mission Statement:Premium products for the industry: Our brands withstand the test of time. Our stakeholders are
customers, stockholders, management and employees.
• Conservative approach to R&D
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TS
Competitive Analysis
• Key Competitor Moves• Chester Dropped Traditional and Low End
Products• Baldwin Dropped Performance Product
• Aggressiveness• Competitor Positioning• Promotion Budget• Customer Accessibility
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Market Share
Year 0Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8
10%
12%
14%
16%
18%
20%
22%
24%
26%
Andrews
Baldwin
Chester
Digby
Erie
FerrisMar
ket P
erce
ntag
e
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Competitive Analysis
• Increasing the market share against competitors• Utilization of the industry conditions report• Focused on top competitors Erie and Chester
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LH
DIG
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Research & Development• Poorly developed low
end product (Dell), near end• Making changes late in
the simulation• Dot: constantly altered
and marketed but never gained any traction
Where We Could Improve: Marketing
• Didn’t market enough with sales and promo budgets early in the simulation• Sales forecasting suffered• In Year 8:• Dot production, 2300. • Sales Budget=$0.
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Where We Could Improve: Forecasting/Production
• Didn’t anticipate increase in demand in Year 5• Late to react to other teams’ decisions• Were hesitant to produce over capacity
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Where We Could Improve: Finance
• Changed Accounts Payable in Year 6 to 60 Days• Didn’t Pay Off Bonds in Later Rounds
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Strengths
• Financial Structure• Capacity Utilization• Positioning (Rounds 1-5)• High End Product (Dixie)
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Financial Structure
Goal: 1.8-2.2 leverage
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Capacity Utilization
Positioning
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High End Product: Dixie
• Best performing product throughout the past 8 years
JL
Future Strategies & Recommendations
R&D (positioning: size, performance, mtbf)• Shift products early to
better utilize their ideal spots• Better fit the needs of the
customer buying criteria• Introduce a new product
early
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Positioning
Future Strategies & RecommendationsMarketing• Price products more competitively • Increase sales and promo budgets to achieve
higher awareness and accessibility early
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
73 87 98 100 100 100 100 10071 86 96 100 100 100 100 10063
7689 96 100 100 100 100
6174
83 92 97 97 99 10061
7493 100 100 100 100 100
Customer AwarenessDaze Dell Dixie Dot Dune
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
61 57 59 66 71 71 78 8043 48 58 67 76 76 74 6249 46 5260 65 65 76 78
37 39 4351
65 6582 86
45 4350
5769 69
84 87
Customer AccessibilityDaze Dell Dixie Dot Dune
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Future Strategies & Recommendations
Marketing Continued• Forecast more
accurately• Prevent stock outs
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
1
2
3 3 3
1
3
1
0.2
0.4
0.6 0.6 0.6
0.2
0.6
0.2
Product Stock Outs
Number of product stock outs % of product stock outs DIG
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Future Strategies & RecommendationsProduction• Enhance production schedule through a more
accurate sales forecast in marketing• Balance 2nd shift production with buying capacity• Be less aggressive with automation• Account for change in R&D when creating
production schedules to avoid stock out • Keep A/P at 30 days
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Future Strategies & RecommendationsFinance• Continue to max out long term debt• Change stock price by issuing and retiring
stock• Issue dividends after Year 6• Continue strong leverage of 1.8 - 2.2
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What questions canTeam Digby answer for you?
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