For the past 8 years, the company has been one of the major players in the sensor industry. The execution of the company’s strategy was successfully carried out generating high profits and market share as expected. The company engaged on a Broad Differentiation Strategy from the start with high investment in all segments in order to capture consistent market share in all segments. With this strategy the company wanted to keep a high market share in each segment with a healthy Contribution margin, this with the objective to have the most cumulative profits at the end of the competition. The company executed a Broad Differentiation strategy by offering the best products in every segment along with a focus in accessibility and awareness in order to keep customer survey score in the positives. The company performed above average in comparison with the industry and its competitors, with our products attaining upon the highest contribution margins in …show more content…
In terms of cumulative profits the company was able to reach the highest in the industry, placed itself in the #1 place in most critical financial factors and maintained a core strategy during all 8 rounds. • Return on Assets, Return on Equity, Leverage and every other financial ratio was kept positive during most of the simulation. The company invested very aggressively during the first round in order to get an edge in the industry. • The strategy that was followed by the company lead to a strong steadily improvement in performance. From year 2 to year 8, The Company was able to maintain itself as the most valued company in the industry and finished as the most profitable. • The company surpassed the average projections concerning market capitalization value and its stock price. The closing stock price for the year exceeded expectations as
From 2010 to 2011 there has been a 23.8% increase in gross fixed assets value. The raised funds through long term debts would have been used to enhance assets base of Speedster. This is a very positive sigh of future profitability and capacity of the company. Higher assets should be able to generate more cash inflow...
Nevertheless, it must “defend” its current market share if not increase it, by maintaining premium quality and develop innovative products. The marketing mix strategies will effectively achieve targeted revenue and profitability in the near future.
The strategy for competing in the market was a broad-differentiation strategy. It was broad because it produced a large variety of products such as clamps, inserts, knobs, and similar items. Also, it differentiates from the other metal companies because of its good quality, good delivery, and reasonable price.
In the fiscal-second quarter that ended Feb. 14, the Memphis, Tennessee-based auto parts retailer reported net sales of $2 billion, an increase of 7.3% from the same period a year ago. Accordingly, domestic same-store sales increase 4.3% for the quarter. Net income for the quarter increased by as much as 9.4% - to $192.8 million – over the same period last year, while diluted earnings per share grew 18.8% to $5.63 per share, marking the thirtieth consecutive quarter of double digit earnings per share growth. These are remarkable figures by any means and reflect the company’s ability to sustain growth.
One of the highest loyalty scores in the industry, with a redemption rate under the industry average; and
Most companies’ primary goal is to maximise profit in order to remain competitive in the market. The concern usually arises in the measures and approaches companies take to achieve that goal and how it will benefit in the short-term and long-term process. (Eccles, 2011)
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
Adopting a strategy of differentiation makes firms provide products and services what are distinct in some way valued by customers.
In 1996 Jim Collins asked the question, "Can a good company become a great company and if so, how?" (Collins, p195) Collins and a dedicated band of 22 researchers set out to discover what transforms good companies into truly great companies. Their criteria for greatness was tough: The researchers sought companies that had underperformed the general stock market for at least 15 years, then went through a transition, and subsequently outperformed the general stock market by at least three times for the next 15 years.
reputation of being the best in the industry. To do this they focused on and
Jim Collins and his research team have done a wonderful job identifying what it takes for a company to go from good to great. I found this book to be extremely interesting and would like to share several of my thoughts.
"Our actions are centred on improved cash flow and profitability -- and at the same time strengthening our strategic core"- Paul Allaire- CEO(24/10/00)
that made the company one of the most recognized companies of the world. The dynamic
withstanding a large recession, and commanding high market share. In the last five years, the company’s
To transform a good company to great company is all manages’ dream, but only few of them make it. To find out the core factors which lead to a good company became a great company is very difficult, because in different era, different industry companies face different opportunities and threats. To begin the research for the Good-to-Great study, Jim Collins and his research team searched for companies that: performed at or below the general stock market for at least fifteen years; then at a transition point began to pull away from the competition, and sustained returns of at least 3 times the general market for the next fifteen years. He started with a list of 1,435 companies and found eleven that met his criteria. These eleven companies produced, on average, a return of 6.9 times the general stock market during the 15 years following the transition points. Collins chose a 15-year span to avoid "one-hit wonders" and lucky breaks. In the book, Collins highlights some important factors which are the result of the research. They are level 5 leadership, fist who … then what, confront the brutal facts, the hedgehog concept, culture of discipline, and technology accelerators, (Collins, 2001, p.12).