Thanks for your analysis and recommendation. Based on the financial model and the recommendations of your other team members, it appears our best strategy is to differentiate as a high value-added provider of customized products and services. Here are the optimum business decisions the team outlined:
Above Market Pricing of high quality product line geared to producing the specific product the customer needs.
Narrow Inventory Policy to reduce assets.
Standard Sales and Marketing Investment meeting, but not exceeding, the competition.
Offer Additional Products such as product servicing, consulting, and contract management of operations.
Make Internal Investments to improve RailMAX's operational efficiency. These include cost reduction, staff training, and internal communications initiatives. The Financing decision is not critical for this optimum strategy since the business is projected to generate sufficient funds for these investments.
According to the financial model, this high value-added strategy could double profits to $200 million with only a 10% increase in assets required to generate those profits. The key business decision was the first one: where to position relative to market prices. By adopting an above market price strategy, profits actually increased on slightly lower sales. The low cost, high volume approach of being below market price fared much worse in this slow growth industry.
Although a broad inventory may make customers happy, it appears they are not prepared to pay the premiums required to make this policy profitable. Instead, RailMAX will probably need to follow a "just-in-time" strategy to keep assets as low as possible.
It appears in this mature, slow growth market that increasing sales and marketing expenses significantly will cause other players to counter, thus reducing profits for all concerned without actually helping customers.
You've been an excellent team member. Thank you for your hard work.
Thanks for your analysis and recommendation. Based on the financial model and the recommendations of your other team members, it appears our best strategy is to differentiate as a high value-added provider of customized products and services. Here are the optimum business decisions the team outlined:
Above Market Pricing of high quality product line geared to producing the specific product the customer needs.
Narrow Inventory Policy to reduce assets.
Standard Sales and Marketing Investment meeting, but not exceeding, the competition.
Offer Additional Products such as product servicing, consulting, and contract management of operations.
Make Internal Investments to improve RailMAX's operational efficiency. These include cost reduction, staff training, and internal communications initiatives. The Financing decision is not critical for this optimum strategy since the business is projected to generate sufficient funds for these investments.
According to the financial model, this high value-added strategy could double profits to $200 million with only a 10% increase in assets required to generate those profits. The key business decision was the first one: where to position relative to market prices. By adopting an above market price strategy, profits actually increased on slightly lower sales. The low cost, high volume approach of being below market price fared much worse in this slow growth industry.
Although a broad inventory may make customers happy, it appears they are not prepared to pay the premiums required to make this policy profitable. Instead, RailMAX will probably need to follow a "just-in-time" strategy to keep assets as low as possible.
It appears in this mature, slow growth market that increasing sales and marketing expenses significantly will cause other players to counter, thus reducing profits for all concerned without actually helping customers.
You've been an excellent team member. Thank you for your hard work.
การแปล กรุณารอสักครู่..
