Period 1

We rank last this period amongst industry competitors. Not the start we were hoping for but the good news is there is only one direction we can go from here. Both products have showed moderate growth in sales but comparably lower than what the other companies are currently selling. One reason is that a competitor of ours, Team E, is undercutting us on price for both products. The other reason is that we have not allocated enough advertising budget to create brand awareness in the market.

Obviously, our goal next period is to capture more market share. We will adopt a price-penetration strategy – we will decrease the price for SOLD and SONO to $199 and $499 with the aim of undercutting all our competitors so as to capture market share in the early stage. We are also hiring more salespeople to assist in the expected growth in sales. Further, we are happy to see that the results for our feasibility study have been released: we are going to invest budget into our first R&D project, PSOLI, which will be used to modify SOLD in period 3.




This period’s decisions feel inline with our overall growth strategy. It certainly feels as though we are aligning our strategy to start heading in the right direction — up!...the stock index chart that is!