Exec Summary Galaxy Inc

8/9/2019 Exec Summary Galaxy Inc

1/12

Executive Summary 1

Running head: EXECUTIVE SUMMARY

Executive Summary

Kevin Cavanaugh

Emry!Ridd"e Aer#nautica" Univer$ity


2/12

I. Executive Summary

%ur mi$$i#n i$ t# &r#vide the cu$t#mer advanced c#m&uter &r#duct$ tai"#red t# their

need$ at a very "#' c#$t ac(ed 'ith exce""ent $ervice and $u&rt) *a"axy Inc) recent"y

"aunched +#ur ne' c#m&uter &r#duct$ int# three di++erent mar(et$) %ur &"an $tarted 'ith

te$ting h#' much &enetrati#n can e achieved in the "arge$t tentia" mar(et $egment) Then

"ater ex&and t# #ther mar(et $egment$ #ver $even ,uarter$) -ith ./.01 tentia" cu$t#mer$/

'e #&ened the +ir$t mar(et in ari$ t# the '#r(h#r$e $egment) Thi$ 'a$ d#ne 'ith *a"axy

Inc2$ +ir$t rand/ the Titan 1) Thi$ c#m&uter #++er$ many +eature$ tai"#red +#r the '#r(h#r$e

$egment at a very "#' c#$t) The next igge$t mar(et +#r the '#r(h#r$e $egment/ 3e' Y#r(/

'a$ #&ened in the third ,uarter) A ne' &r#duct 'a$ intr#duced a$ 'e"" 'ith m#re +eature$

and $ti"" at a very "#' c#$t t# the cu$t#mer) Thi$ 'a$ the Titan 4 and it ha$ $h#'n m#re

&u"arity than it$ &redece$$#r/ the Titan 1) The Titan 4 'a$ "ater u&graded t# the Titan 4"u$

'hich 'a$ an even greater $ucce$$ due t# it$ u&grade$) In #rder t# &enetrate the #ther mar(et$

and turn m#re tentia" cu$t#mer$ int# rea" cu$t#mer$/ t'# ne' rand$ 'ere created targeting

the Mercede$ and trave"er mar(et$) The 5"#rin came +ir$t in the +i+th ,uarter) Thi$ i$ *a"axy

Inc2$ igge$t $ucce$$) -e have &r#+ited #ver 1)6 mi""i#n d#""ar$ 'ith thi$ rand a"#ne #ver the

c#ur$e #+ three ,uarter$) Thi$ 'a$ mar(eted t#'ard the Mercede$ $egment and heavy

adverti$ing 'a$ &ut in &"ace 'ith thi$ &r#duct) In the $ixth ,uarter came #ur $ec#nd e$t

rand *a"axy #'n$) It2$ the 7ite##() Mar(eted t#'ard the trave"er $egment/ it $eem$ t# e

&r#+ita"e in the Mercede$ $egment a$ 'e"") Thi$ rand 'a$ intr#duced a"#ng 'ith #ur ne'

mar(et/ T#r#nt#) -e current"y &"an #n #&ening u& the "a$t mar(et in T#(y# a$ 'e"" a$

intr#ducing +#ur c#m&"ete"y ne' rand$) I+ 'e &enetrate the mar(et$ $ucce$$+u""y 'ith +#ur

ne' &r#duct$ a$ 'e"" a$ #ur exi$ting #ne$/ 'e have the tentia" t# at "ea$t tri&"e #ur


3/12

&r#+ita"e inc#me) -e can ta(e thi$ inc#me t# $&ruce u& adverti$ing) -e 'i"" hire m#re $a"e$

'#r(+#rce) %nce #ur e$t &r#duct$ turn int# 8ca$h c#'$9/ 'e then intr#duce m#re &r#duct$

and try and +#rce c#m&etit#r$ #ut)

II. Description of Business and Industry

*a"axy Inc) i$ a ne' c#m&etit#r in the cr#'ded c#m&uter manu+acturing u$ine$$

+#unded three m#nth$ ag#) -e are +#cu$ed t# &r#vide ,ua"ity &r#duct$ de$igned +#r the

c#n$umer$ at a etter &rice than #ur c#m&etit#r$) -e current"y have +#ur &r#duct$ de$igned t#

&enetrate the '#r(h#r$e/ Mercede$ and trave"er mar(et$) %ur current #&erati#n$ are in T#r#nt#/

3e' Y#r( and ari$)

Titu$ 1 'a$ #ur +ir$t &r#duct t# hit the mar(et 'ith &"an$ t# target the '#r(h#r$e

$egment) -ith the '#r(h#r$e $egment$ tentia" demand at the highe$t/ it 'a$ #n"y "#gica" t#

$tart the +ir$t &r#duct #++ in a mar(et 'ith m#re tentia" cu$t#mer$) The Titu$ 1 c#m&uter #++er$

the '#r(h#r$e $egment #++ice &r#ductivity 'ith high &er+#rmance c#m&uting 'er at c#$t #+

4/;


4/12

An#ther ne' de$ign came 'ith the 5"#rin) Thi$ ne' &r#duct 'a$ a c#m&"ete re!

de$ign t# target m#re #+ the trave"er mar(et $egment) It$ $"im/ rugged and u"tra +a$t c#m&uting

$ty"e 'a$ m#re a&&ea"ing t# Mercede$ cu$t#mer$ and a"$# a $ma"" rti#n #+ trave"er cu$t#mer$)

Thi$ &r#duct 'a$ de$igned t# r#aden +#cu$ #n m#re #+ the mar(et$ and gain m#re cu$t#mer$)

%ur "ate$t de$ign i$ the ne' 7ite##() Thi$ &r#duct i$ de$ign t# target the "a$t

$egment #+ the mar(et/ the trave"er $egment) It ha$ $h#'n $ucce$$ 'ith = rand ?udgment

'ith the trave"er $egment) It$ "#' c#$t rtai"ity 'ith u"tra +a$t c#m&uting 'er ha$ $h#'n

much $ucce$$ am#ng cu$t#mer$) A"#ng$ide #ur "ate$t &r#duct 'e have #&ened u& a third ranch

in T#r#nt#) Thi$ mar(et ha$ the third highe$t tentia" demand #ut #+ the +#ur $$i"e mar(et$)

*a"axy Inc) ha$ a #ne hundred &ercent cu$t#mer driven mar(eting $trategy) -e

have $tudied a"" $urvey$ +r#m the cu$t#mer and tried t# +it 'hat that $&eci+ic $egment 'ant$ int#

#ur c#m&uter &r#duct$) A+ter &utting the &r#duct #ut int# the target mar(et 'e then ana"y@e 'hat

the cu$t#mer$ re$nd 'ith) I+ the ma?#rity #+ #ur cu$t#mer$ are n#t $ati$+ied/ 'e then try and

change the &r#duct t# etter $uit them) I+ that d#e$n2t '#r( 'e try a c#m&"ete"y ne' de$ign) Thi$

can e $een 'ith #ur +ir$t three &r#duct de$ign$)

A S-%T ana"y$i$ #+ *a"axy Inc) ha$ een created t# eva"uate the c#m&any a$ a

'h#"e and ex$e #ur $trength$/ 'ea(ne$$e$/ threat$ and #&rtunitie$) -e 'i"" $tart #++ 'ith

$#me #+ #ur $trength$) *a"axy Inc) ha$ a"ready e$ta"i$hed it$e"+ in three #ut #+ +#ur mar(et$) -e

current"y have +#ur &r#duct$ avai"a"e t# c#n$umer$ targeting a"" mar(et $egment$) -e #++er

"#'er c#$t &r#duct$ than #ur c#m&etit#r$) %ur &r#duct$ a"$# have m#$t #+ the $ame +eature$ i+ n#t

m#re than #ur c#m&etit#r$) %ur 'ea(ne$$ th#ugh i$ 'e are in need #+ a "arger '#r(+#rce) -e

current"y #n"y have t'e"ve t#ta" '#r(+#rce &er$#nne" $&read even"y acr#$$ three '#r"d mar(et$)

%ur c#m&etit#r$ have much m#re than u$) *a"axy i$ a"$# in need #+ m#re rand adverti$ing) -e


5/12

are current"y a""#tting t'enty &ercent #+ #ur gr#$$ inc#me t# adverti$ing) A"th#ugh thi$ i$ high/

#ur c#m&etit#r$ are adverti$ing m#re and gaining a igger mar(et $hare) 3ext 'e 'i"" di$cu$$

*a"axy Inc2$ threat$) %ne #+ #ur #n"y main threat$ i$ cu$t#mer$ are $h#'ing etter +eedac( #n

$#me #+ #ur c#m&etit#r$ &r#duct$) -e d# have $#me #&rtunitie$ at *a"axy Inc) %ne #+ #ur e$t

thing$ i$ 'e have a $teadi"y increa$ing &r#+it) In ,uarter t'# 'e 'ere at !46


6/12

the '#r(h#r$e $egment and #ur Titu$ 1 c#m&uter &r#duct 'a$ mar(eted 'ith thi$ $egment in

mind) Sti"" trying t# mar(et t# the '#r(h#r$e $egment 'ith Titu$ 1 and Titu$ 4/ 3e' Y#r( 'a$

#&ened ecau$e #+ it$ $ec#nd highe$t tentia" demand) ari$ and 3e' Y#r( remained #ur $#"e

mar(et$ unti" the $ixth ,uarter) T#r#nt# 'a$ then #&ened in #rder t# ta(e advantage #+ the

Mercede$ mar(et 'ith the ne' 5"#rin c#m&uter)

*a"axy Inc) $tride$ t# &r#vide the cu$t#mer 'ith &r#duct$ that create $#"uti#n$ +#r

their &r#"em$) %ur &r#duct$ are ui"t t# give the cu$t#mer 'hat they 'ant) Cu$t#mer$ $ee( a

g##d &r#duct t# +it their individua" need$ a$ 'e"" a$ g##d &r#duct $u&rt) -e &ut an em&ha$i$

#n $u&rt y a""#tting m#re &er$#nne" t# cu$t#mer $ervice and $u&rt)

*r#'th rate and &r#+it$ have $h#'n a $teady increa$e) -ith that $aid/ the +uture i$

"##(ing &r#+ita"e) -ith the ince&ti#n #+ #ur revi$i#n$ #+ c#m&uter &r#duct$/ gr#'th can e

increa$ed at a +a$ter rate)

Acc#rding t# the '#r"d mar(et rand ?udgment the 5"#rin +it$ the cu$t#mer$

&r#+i"e$ the e$t) %ut #+ a"" c#m&eting &r#duct$ in the Mercede$ $egment/ The 5"#rin i$ $ec#nd

e$t) *a"axy Inc2$ 7ite##( c#me$ numer #ne +#r rand ?udgment in the trave"er $egment) The

Titu$ 4"u$ ha$ an average ?udgment +r#m c#n$umer$ and the Titu$ 1 ha$ the "#'e$t ?udgment

#ut #+ a"" *a"axy2$ &r#duct$) Titu$ 1 and Titu$ 4"u$ 'ere am#ng the +ir$t &r#duct$ created $# it2$

#n"y ex&ected that it$ &u"arity $"i&$ a$ it get$ #"der) %ur &r#duct$ d# +it the target mar(et$

&r#+i"e) %ur m#$t recent additi#n$ +it the &r#+i"e etter/ ut #ur #"der &r#duct$ are $ti"" eing $#"d

and &r#+ita"e)


7/12

The +ir$t ch#$en $egment t# mar(et the Titu$ 1 'a$ ari$) -ith ari$ having a tentia"

demand #+ 1/606 t#ta" and ./.01 in the '#r(h#r$e $egment/ the Titu$ 1 'a$ a g##d match +#r

the ig mar(et) 3e' Y#r( eing the igge$t t#ta" mar(et and $ec#nd igge$t +#r the '#r(h#r$e

$egment/ it 'a$ a g##d mar(et +#r the Titu$ 1 and the ne' Titu$ 4) Thi$ mar(et had 10/.;= t#ta"

tentia" cu$t#mer$ and ./1=; tentia" cu$t#mer$ in the targeted '#r(h#r$e $egment) 3e' Y#r(

a"$# ha$ the highe$t tentia" demand in the Mercede$ and trave"er $egment$ 'hich 'a$ needed

+#r the u&c#ming 5"#rin and 7ite##() T#r#nt# 'a$ the "ate$t mar(et t# e #&ened) A"th#ugh

there are #n"y 1/= tentia" cu$t#mer$ in the trave"er $egment and 4/0 tentia" cu$t#mer$ in

the Mercede$ $egment/ *a"axy2$ ha$ m#re &r#duct$ targeting the '#r(h#r$e $egment)

rice $en$itivity +#r the '#r"d mar(et ha$ een +av#ra"e 'ith a"" &r#duct$) The Mercede$

$egment 'a$ a"'ay$ #ne hundred &ercent $itive 'ith a"" &ricing #n a"" &r#duct$) The trave"er

$egment 'a$ in$en$itive a$ 'e"") The 7ite##(/ eing *a"axy2$ m#$t ex&en$ive &r#duct/ $a'

$"ight $en$itivity t# the trave"er $egment) Sti"" a g##d return/ the trave"er $egment dr#&&ed t# =6>


8/12

?udgment 'ith the 7ite##() The m#$t $en$itive t# &rice +"uctuati#n 'a$ the '#r(h#r$e $egment)

Thi$ $egment i$ "##(ing +#r a &r#duct in the &rice range #+ 4/.


9/12

$ervice$) The igge$t 'ea(ne$$ +#r a"" c#m&eting c#m&anie$ i$ n#ne $eem t# e +#cu$ed #n the

trave"er $egment) Idea" S#"uti#n$ a"$# ha$ a $ma"" numer #+ rand$ +#r $a"e)

Idea" S#"uti#n$ 'i"" "i(e"y &u$h the '#r(h#r$e $egment) They are current"y at ;=)4>

mar(et $hare/ thi$ '#u"d e the m#$t "i(e"y &ath) *BC 'i"" m#$t "i(e"y $tic( 'ith an average

a&&r#ach y trying t# &enetrate a"" mar(et $egment$ even"y) B3 Techn#"#gie$ 'i"" m#$t "i(e"y

$tay a'ay +r#m the '#r(h#r$e $egment and $tic( 'ith the higher end &r#duct$) I+ 'e at *a"axy

Inc) try &enetrating the Mercede$ and trave"er mar(et$ m#re/ 'e may $ee c#m&etit#r$ +#""#' i+

'e are $ucce$$+u")

IV. Marketing lan and Sales !actics

The initia" mar(et $egment *a"axy Inc) 'a$ targeting 'a$ the '#r(h#r$e $egment) Thi$

'a$ due t# the high tentia" $a"e$ in that $egment) Current"y *a"axy Inc) i$ "##(ing int#

targeting the trave"er and Mercede$ $egment$ m#re) Thi$ i$ due t# a high &r#+it margin and high

tentia" &r#+it) The '#r(h#r$e $egment need$ t# e rede+ined) -e need t# re!invent #ur &r#duct$


10/12

targeting thi$ mar(et t# etter $uit the need$ #+ the cu$t#mer) *a"axy Inc) need$ t# get a etter

+##ting in thi$ mar(et $egment) -e need t# mar(et #ur 5"#rin &r#duct t# the Mercede$ $egment

m#re aggre$$ive"y) Thi$ i$ #ur igge$t mar(et $hare and 'e $h#u"d create m#re &r#duct$ t#

&enetrate the mar(et dee&er) The trave"er mar(et $egment i$ the un!t#uched territ#ry) A"th#ugh

#ur 7ite##( i$ d#ing 'e"" in thi$ mar(et/ an#ther &r#duct $h#u"d e created t# ta(e a h#"d #+ thi$

$egment)

The '#r(h#r$e $egment 'a$ the numer #ne g#a" due t# it$ $heer numer$) The g#a" i$ t#

$ti"" &enetrate the $egment dee&er and have m#re em&ha$i$ &"aced #n the Mercede$ and trave"er

mar(et $egment$) Thi$ 'i"" give u$ a igger #tt#m "ine &r#+it and he"& get a etter +##ting in the

#vera"" '#r"d mar(et) -e &"an t# have #ur initia" +#cu$ #n the Mercede$ mar(et $egment) Thi$ i$

ecau$e it i$ #ur igge$t m#ney ma(er) Sec#nd 'i"" e the trave"er mar(et) Thi$ mar(et $egment

ha$ the highe$t tentia"/ in re$&ect t# c#m&etit#r$ targeting the $egment/ and it i$ a"$# #ur

$ec#nd igge$t &r#+it ma(er) The '#r(h#r$e mar(et i$ $ti"" in there even th#ugh thi$ $eem$ t# e

the "ea$t &r#+ita"e 'ith *a"axy Inc) and c#m&etit#r$ a"i(e)

C#m&uter &r#duct$ are *a"axy Inc2$ u$ine$$) The 5"#rin i$ at it$ c#re) Thi$ i$ the igge$t

&r#+it ma(er #+ a"" &r#duct$ *a"axy $e""$) The 5"#rin ha$ current"y &r#+ited 1)60 mi""i#n d#""ar$)

%ur $ec#nd m#$t &u"ar &r#duct i$ the 7ite##() Thi$ ha$ gained *a"axy Inc) 1)44 mi""i#n

d#""ar$) The 5"#rin i$ de$igned t# e a &er+#rmance (ing de$igned +#r the Mercede$ $egment

'hi"e the 7ite##( name $ay$ it a"") It i$ a rta"e/ rugged and +a$t/ c#m&uter de$igned

e$&ecia""y +#r #ur trave"er mar(et $egment)

-e are trying t# create a ,ua"ity rand that $uit$ #ur cu$t#mer2$ "i+e$ty"e) -ith etter

$u&rt and etter &r#duct$ 'e are di++erent +r#m #ur c#m&etit#r$) -e are a rand that 'ant$ t#

e "#ya" t# the cu$t#mer$ t# turn initia" cu$t#mer$ int# re&eat cu$t#mer$) %ur rand i$ ac(ed y


11/12

hard '#r(/ $ervice and $u&rt t# (ee& u$ in the +r#nt #+ the "ine) -e 'ant t# e the e$t in the

mar(et $# #ur cu$t#mer$ can $ee the ,ua"ity in n#t #n"y the &r#duct$ ut the c#m&any a$ 'e"")

3e' &r#duct$ are in the near +uture +#r *a"axy Inc) In #rder t# &enetrate the targeted

$egment$ m#re/ 'e 'i"" need ne' techn#"#gy) -e &"an t# re$earch and create three ne'

c#m&uter rand$) There 'i"" e #ne ne' rand +#r each $egment) Ba$ed #n 'hat 'e have "earned

'ith &a$t &r#duct$/ 'e 'i"" ui"d #n 'hat 'e have "earned and 'hat '#r(ed in each $egment) It2$

e$timated that re$earch 'i"" ta(e r#ugh"y a c#m&"ete ,uarter) A $ec#nd ,uarter 'i"" e re,uired

+#r deve"#&ment and te$ting e+#re the &r#duct i$ intr#duced int# the mar(et)

ricing i$ very imrtant +#r #ur c#m&any) Being a c#m&uter c#m&any 'e create

&r#duct$ that #ther$ can &r#duce a$ 'e"") -e have many c#m&etit#r$ and the $$ii"ity #+ m#re

c#m&etit#r$ entering the mar(et i$ "i(e"y) Daving $aid that/ mar(et!$(imming i$ an inade,uate

a&&r#ach t# &ricing $trategy) 5#r u$/ mar(et!&enetrati#n &ricing i$ #ur e$t a&&r#ach) -e $et the

&rice "#' t# &enetrate the mar(et dee& and +a$t) Thi$ give$ u$ a high tentia" #+ many cu$t#mer$

in a $h#rt am#unt #+ time) *a"axy Inc) &"an$ t# (ee& thi$ $trategy t# he"& u$ get ahead #+ the

c#m&etiti#n) %ur &r#+it margin$ range +r#m 46/;06 u& t# 1/60/01) %ur Titu$ 1 i$ the "ea$t

&r#+ita"e 'hi"e the 5"#rin i$ d#ing the e$t) The Titu$ 4"u$ i$ d#ing $igni+icant"y etter than it$

&redece$$#r at 1/4


12/12

Adverti$ing 'i"" $ee $#me change$ in the +uture) %ur c#m&any need$ t# re!ad?u$t #ur

+und$ t# etter $uit the igge$t tentia" &r#+it ma(er$) -e are current"y $&ending 0./.14 #n #ur

m#$t &r#+ita"e &r#duct) That2$ thirty three &ercent #+ the gr#$$ margin +#r that $&eci+ic rand)

-e $h#u"d "#'er that numer $"ight"y and a""#cate m#re +und$ t# di++erent $egment$) *a"axy2$

#vera"" gr#$$ margin i$ at 0/4;=/

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Exec Summary Galaxy Inc