Digby Executive Summary

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The goal of Team Digby was to become the market leader of the industry. Management has carried out a strategic plan of maintaining low profits and borrowing as little money as possible. Team Digby had several strategies implemented during the fiscal year. In the initial strategy, our aim was to invest heavily on TQM to leverage cost advantages in the upcoming years, increase automation that competitors will not spend, and mark down excessive inventory in unprofitable lines by 20%, with zero R&D. The company also aimed to sustain its presence in both segments by utilizing extensive differentiation strategy. The strategy saw our prices align in the first three competitive rounds with the average prices of the market in each segment while keeping …show more content…

Our strategy began to shift to that directing and focusing primarily on the high end segment while maintaining product’s presence in the traditional segment. On top of that, we landed new products that ended up in the high market segment. In the mid-year analysis, we introduced new products the company can keep up with in the high market segment. We strongly believed that if we continued having strong presence in the traditional and high end categories we would achieve our objectives. As the simulation progressed, we moved our products from the size and performance segments to low end to ensure we doubled our products within these categories. We were hopeful that the products would be cheaper to retain within the R&D. When it comes to product pricing, we always strived to keep our prices low in the industry. In the beginning rounds, we lowered our prices by $6.00 before introducing a new product. We did this to attract the customers and create a relationship so that after we introduce a new product, their awareness can be high. In later rounds, we continued the low pricing strategy in attempt to attract more customers and increase in profits when other products of the market were highly priced. Looking back, we can generally say that while business strategies are imperative to adhere to, having a profitable business is the ultimate goal. Team Digby’s results ended up with an increase in market share in Dixie and Daze as they were in two segments at once, and sustained a steady cumulative profit throughout the

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