We noticed that Team I is starting to jump up the stock price index and they have moved into 1st this period. We are weary that we must protect our competitive position and make some attempts to curb Team I’s rapid progress. Because we do not have enough budget to complete our R&D for our Vodites, we will allocate part of the required budget to PVOVO (not the PVOLT because we believe that PVOVO, a mid-range product would require less modifying in the future than would a low-end product) and then dedicate the remaining difference next period. We may be losing the first mover advantage but our risk-adverse management team is looking for more stable profits so as to maintain our stock price for fear of it dropping even further down.
Planning ahead, we are also developing two new R&D feasibility studies (PSOHO and PSOBE) this period hoping to modify SONY and SOBO upon R&D completion. These modifications would help us better target SONY and SOBO to the Singles market, which is showing drastic growth in the coming periods according to the market forecast we purchased.
So that’s a lot of R&D projects…and they are expensive! We will have to cut advertising costs next period in order to spare money for all of the R&D that is on the go. At this point we feel that R&D is a key strategic tool in terms of evolving stagnant products and realigning them with new, growing segments. We are also ordering less Vodites research studies this period. This is going to be a sacrifice of short run sales for long run profits. We believe it will be more valuable to the company’s overall success to go with this strategy. We know that this is going to be a hard time for our company but we are committed to long term success and not just short term gains.
Planning ahead, we are also developing two new R&D feasibility studies (PSOHO and PSOBE) this period hoping to modify SONY and SOBO upon R&D completion. These modifications would help us better target SONY and SOBO to the Singles market, which is showing drastic growth in the coming periods according to the market forecast we purchased.
So that’s a lot of R&D projects…and they are expensive! We will have to cut advertising costs next period in order to spare money for all of the R&D that is on the go. At this point we feel that R&D is a key strategic tool in terms of evolving stagnant products and realigning them with new, growing segments. We are also ordering less Vodites research studies this period. This is going to be a sacrifice of short run sales for long run profits. We believe it will be more valuable to the company’s overall success to go with this strategy. We know that this is going to be a hard time for our company but we are committed to long term success and not just short term gains.
