Evgenii, Roelof & Sjoerd

Mission

To establish Andrews Co. as a broad differentiatorof the sensor industry by producing quality, low-priced products that capture the market share and maintain a competitive edge.

Value proposition• To strive for the market leadership in Low

segment by serving our customers’ needs• To constantly innovate our top products• To launch new products, which offer

more choice for the customer

Strategy OverviewPlace all products on middle line and keep them there. Products can drift backwards.

Two new products:Awsome for High End segmentArie to conquer Traditional segment

Strategy R&D

• Meet customer criteria• Shift all current products for

placement within fine cut circle• Produce new product in

performance & traditional segments• Repositioning the products towards

the long-term prospective

Strategy Marketing

• Competitive pricing strategy• Achieve 100% awareness &

accessibility• Accuretly forecast upcoming years’

sales based on units demanded and potential market share

Strategy Production

• Heavy investments in capasity and automation of the plant

• Avoiding 2-nd shifts• Aiming 0% inventory

Strategy Finance

• To find a perfect levarage level between long-term debt, current debt, stock & retained earnings

• Build buffers to cope with unforeseen declining sales (=8 mln)

Strategy HRM & TQM

• Training & recruiting to the highest standards

• Investing heavily into reducing cost via TQM (2 rounds)

Round 1• Testing the game• Positioned everything within cost & reason to

fit the ideal spot• High promo & sales budgets

Made profits of 3.3 mln Focused on all products (low margin)

Round 2• Proceeded with the Round 1 strategy• Focused on customer criteria• Focused on increasing profit margin

Made profits of 7.8 mln Increased stock price by $7.50

Round 3• Created Arie (Traditional) & Awesome

(Performance)• Invested heavily in capacity,

automation, R&D and TQM• Outspent all competitors on promo &

sales budgets

Steep decrease in stock price (-$10) Big Al visit ($2.7 mln)

Round 4• Invested in capacity again• Positioned all products for the ideal spots

for Round 6• Again focused on products (!) • High promo & sales budgets investments

Made loss ($2 mln) Stock price decreased by $2 Lost some advanted on labor negotiations

Round 5• Focused on 3 segments (instead on all)• Dropped Agape• New products gained some awareness &

sales

Made profits of 4.5 mln Stock price increased by $8.5 Became market leader in Low (37%)

Round 6• Positioned Awesome and Arie into

ideal spot and let the other ones flow• Managed capacity• Avoided inventories• Lowered promo & sales budgets

Good profits ($18.9 mln) Very good profit margin Increase in stock price by more than

50%

Results

• Cumulative profit $ 35,693,912• 18,9% Total market share• Competing seriously in 4 segments• Market leader in Low segment• 3rd most valuable company at $ 167,000,000• Share value growth almost 50% last year• Initial strategy had its flaws bacause shifting products is very costly &

time-consuming• Products performed poorly in between segments

SWOT team AndrewsStrengths: Great team work Versiitility Good long-term strategy

Weaknesses: Busy Schedule Difficulties in initial rounds with platform work Betting on all ducks fot too long

Future growth• Continue position in Low Segment• Refine position in Trad segment• Add product in High segment• Divest product in Performance segment• Continue investing in Andrews company as we did