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"A company can outperform rivals only if it can establish a difference that it can preserve. Competitive strategy is about being different, deliberately choosing a different set of activities to deliver a unique value mix." – Michael Porter In the LINKS Marketing Simulation, our team manages a firm in the set-top box industry, competing against other firms in the same simulated industry. Our goal is to improve our firm's long-run financial performance. As our team assumed managerial control at the end of quarter 3, our set-top box firm's product line consists of two products, a low-quality low-priced product 1 and a high-quality high-priced product 2. Both products were profitable at the end of quarter 3, although profitability varied by product and market region. Initially, all firms in the industry had been emulating each other for some time, so competitors had exactly the same products, priced and marketed identically. While our firm and our competitors had the identical marketing programs in place throughout quarters 1, 2, and 3, there were some differences in market standing due to the normal randomness inherent in the sales generation process in the set-top box industry. Within the LINKS Marketing Simulation, our team's performance will be evaluated via a multi-factor, balanced scorecard evaluation system that includes financial, operational, and customer-facing performance metrics. Thus far, our firm has successfully captured 52% market share with the highest performance measures in net income to revenue, customer satisfaction, and stock price.
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JARVIS TECH
Matt Zinner, CEO
Niki Taylor, CMO
Stuart Ferrin, CRO
Namisha Balagopal, COO
Sarah Young, CCO
Dzenana Fazlic, CHRO
OBJECTIVE OF FIRM
M.Z.
DRIVING POINTS
• Customer centric model to be a value firm– Customized product for each segment – Price customers were willing to pay
• Small margins while allowing profitability • Targets: – Customer satisfaction–Market share – Stock price – Net income
CUSTOMER SATISFACTION
Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q130%
5%
10%
15%
20%
25%
30%
35%
40%
Firm 1Our FirmFirm 3Firm 4
MAJOR DECISIONS OF THE FIRM
M.Z.
MAJOR DECISIONS
• Reconfiguration of Product One• Customizing Products per Region• Removing Product Two from Pacific • Removing Product One from Europe• Double Launch- Latin America and Europe
OVERALL SWOT ANALYSIS
N.T.
SWOTStrengths Weaknesses
• Unified leadership and team• Core strategy and research
drove all decisions • Forward and holistic thinking• Overcame learning curve early• Marketing penetration and
customer centric strategy• High customer satisfaction• Customized products to
customers
• Time constraints in life• Forecasting • Understanding competitive
landscape • Firm complacency • Laser vs. Flashlight mentality• Lack of focus on
implementation of promotional positioning
REGION 1: UNITED STATES
SWOT ANALYSIS
Strengths Weaknesses
• Overall Market Share: 34.5%• Accurate Alpha/Beta balance• Higher bandwidth• Higher quality packaging• Specifically tailored products
• Price sensitive to industry• Customers sensitive to
marketing• Unstable firm behavior early on• Market saturation/High
competition
SWOT
MAJOR DECISIONS• Increased Marketing Spend
• Remained in Region Regardless of High Saturation• Promotional and Price Oversight
REGION 1 MARKET SHARE
13.7%
34.5%19.3%
27.8%
Q13 Region 1 Market Share
Firm 1Our FirmFirm 3Firm 4
REGION 2: EUROPE
SWOT ANALYSIS
N.B.
Strengths Weaknesses
• Dominant Market Share: 50.4%• Understand customer wants • Strategically designed product• Highly competitively priced
• Potential to be out-positioned• No maximized bandwidth
product • Not enough attention due to
lack of research
MAJOR DECISIONS• Timeframe to Launch
• Launch One
SWOT
8.7%
50.4%
32.7%
8.3%
Q13 Region 2 Market Share
Firm 1Our FirmFirm 3Firm 4
REGION 2 MARKET SHARE
REGION 3:PACIFIC
SWOT ANALYSIS
S.F.
Strengths Weaknesses
• Dominant Market Share: 50.4%• Research to re-enter the market • Understood customers from
experience and research• Ability to turn weaknesses into
strengths
• Oversight on marketing• Overcorrecting actions • Launch 1- inaccurate product
configuration
MAJOR DECISIONS• Leaving the Market• Re-entering the Market• Product Reconfiguration
SWOT
8.0%
60.0%
20.0%
13.0%
Q13 Region 3 Market Share
Firm 1Our FirmFirm 3Firm 4
REGION 3 MARKET SHARE
REGION 4:LATIN AMERICA
SWOT ANALYSIS
D.F.
Strengths Weaknesses
• Dominant market share: 58.5%• Launch One- configuration to
customer wants • Highest quality product• Prepared beforehand
• Pricing error • More customer focused and
complacent of competition• Did not have research entering
market
MAJOR DECISIONS• Launch One
• Promotional Strategy• Launch Two
SWOT
25.0%
59.0%
16.0%
Q13 Region 4 Market Share
Firm 1Our FirmFirm 3Firm 4
REGION 4 MARKET SHARE
STRATEGY TO BE PURSUED
S.Y.
DECISIONS TO BE ADDRESSED
• Revisit the pricing of Product 2 in Latin America launch
• Counter Firm 3 in Pacific • Consider options to better serve customers in
Latin America• Differentiation in the United States
CUMULATIVE NET INCOME UTA
Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12 Q13 $-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
Cumulative Net Income
Firm 1Our FirmFirm 3Firm 4
