Strategy Memo Essay
We aspire to be an industry leader. With innovation in our DNA, we strive to gain 50% plus of the market share in both high and low tech sectors by manufacturing cost-effective low tech products and by creating cutting-edge high tech products. Our customer centric approach in positioning products is key to achieving our healthy profit margin of 30% plus. By investing in CSR, we aim to enhance the confidence of our investors and achieve over 375% in stock growth.
Our overall strategy objective is to become an industry leader through market share in both high and low tech markets while maintaining healthy margins and stock price. The scope of our business activities will be focused on becoming a cost leader with a product lifecycle focus in the low tech industry and a differentiator with a product lifecycle focus in the high tech industry. In the low tech market, we will minimize our R&D, production, and material costs, enabling us to compete on the basis of price. In the high tech market, we will distinguish our products with customer centric R&D, appealing designs, high awareness, and easy accessibility allowing us to keep pace with the market.
We will price our high tech products above average and increase capacity as demand increases. The product lifecycle focus is about introducing new products in the high tech segment and allowing these products drift and mature in the low tech segment. The product lifecycle focus enables our company to extend the longevity of our products on the market. Once we have strong products out in the market, we will start retiring our debt and buying back stocks. This will increase our stock values so that our shares will be more appealing to investors. In addition, we will purchase capacity and automation from the start so that we have the ability to increase production and lower costs for multiple products. These investments will be made early and often throughout the simulation in order to satisfy demand for our products and maximize profit.
At Erie 88, we want to make our products as cutting edge and high tech as possible while providing cost leading product solutions to dominantly operate in both high and low tech market segments. We will have strong automation in our low tech products and strongly invest in our R&D department. Also, we will invest in our marketing to create maximum awareness especially for our high tech products, which we are very proud of.
In order to achieve superior performance, our competitive advantage lies in minimizing production costs in the low tech industry and creating appealing designs in the high tech industry. Erie 88 will dominate both the high tech and low tech markets by having at least three products. An emphasis on heavy investment in research and development for our high tech sensors will be implemented immediately when the market opens in 2014.
High customer awareness for each new product we introduce to the market is an extremely important aspect of our product approach. Significant investments in each product’s promotional budget will be made starting one year before each product hits the shelves. We will focus on automation to reduce our costs. Our product approach is customer centric and we strive to implement strategies such as taking out maximum long-term debt and issuing maximum stock at the beginning to finance our operations and then pay back debts in the middle rounds to increase our stock value while increasing our stock health.
By being a profitable, innovative, and socially responsible company, we aspire to gain the respect of our employees and customer, and have the confidence of our investors. By having a healthy stock and satisfied shareholders, we will be able to not only improve our products and satisfy our customers but also invest in philanthropic initiatives and environmental action plans.