Download Final report globus/Final report globus and more Exams Reporting and Production in PDF only on Docsity!
I. BUSINESS STRATEGY IN 2 MAIN STAGES (YEAR 6-YEAR 7; YEAR
8-YEAR 13)
1. Product design strategy: 1.1. For Action Camera products. From the very first year, the company has oriented the motion picture camera product according to the strategy of a quality product.. As a result, our P/Q ratio has consistently stayed above the industry average for the first 2 years and subsequent years 8 to 13. In addition, realizing the importance of image design to market share, since 6 years we have started to increase the number of product models and have always been at the forefront of this variety. Perhaps that is why our company has a fairly stable market share compared to competitors in the industry in this product. The company always focuses on investing in product research and development to reduce production costs. The company has invested in R&D expenses from year 6 to year 11, while it started spending heavily from year 8 and peaked in year 10, not spending anymore since year 11 because the impact of R&D has gradually faded. use. 1.2 For UAV Drones. About UAV Drones, we follow the strategy of a premium product.That means a high quality product and a high price too.Therefore, we always design the highest P/Q ratio of the product in the market. In detail, from year 6 to year 7, the P/Q ratio is always second only to company E. Starting from year 8 onwards, the P/Q ratio skyrockets to the highest in the industry and far away compared to other companies. In addition, from year 8 onwards, we also focus on product diversity, especially in the last 3 years, we have pushed the number of product models to 4, the highest in the industry. In addition, similar to AC Camera, our company also pays great attention to investment in research and development of UAV drone products to reduce production costs. The company has used quite a lot of money to invest from year 6 to year 12, which started spending heavily from year 6 and peaked in 3 years: year 8, year 9, year 10. Then stopped spending on it for the last 3 years because the impact of R&D has completely lost its effectiveness in reducing production costs. 2. Marketing Strategy
2.1. AC Camera In two years 6 and 7 AC Camera's aim is to gain market share. So we choose the strategy of high quality, affordable price to compete with other competitors. From year 8 to year 13, we have flexible strategies. In year 8, our strategy is still to maintain a high quality but at a much higher price. From year 9 to year 11, the 3-year competitive strategy is the best cost. However, in the last years, our strategy is to lead in quality, with the highest PQ and price in the industry. In general, the marketing strategy for AC Camera changes flexibly based on the market situation and investor expectations. 2.2. UAV Drone Our original goal for this product was to focus on profit rather than market share. Therefore, we always have a very high price compared to the market, but besides that, the product quality, as well as the number of models, are also correspondingly high. And to compensate for the high price, we also spend a lot on promoting products on the Website, Advertising, supporting expenses for 3rd-Party Retailers with Discount Online Retailers and Retailer Recruitment items. In terms of website displays and advertising, we started to increase our budget strongly from year 8. From year 10 onwards, the number of ads spent exceeded $10 million. On the side of Retailer Recruitment, we promoted from the first years and continued to increase gradually in the following years.
3. Financial strategy. In terms of financial strategy, our company tried to use capital and assets for investment. Meanwhile, we always spend much more money to repurchase shares each year as much as possible, contributing to the increase in the share price for the sake of improving the company's ROE, as well as EPS, attracting investors to buy more shares of the company with attractive profits.
3.1 EPS
Year 6-7 and year 8-13: Overall, EPS has increased gradually over the years, EPS reached its peak in year 13 because of an effective business strategy that reaped high profits and by reducing the number of outstanding shares to a minimum. During the operation, from year 6 to year 13, EPS increased nearly 30 times, from 0.51 in year 6 to 14.84 after 8 years of business. Through the 8 years of operation, EPS saw a sharp increase in the period from year 10 to year 11, the period from year 11 to year 12, and the period from year 12 to year 13. EPS growth from year 10 to year 11 was to buy 1,200,000 shares in year 10, and certainly also included the fact that our company made a good business decision this year. 3.2 ROE During the 8-year period, our company was generally quite efficient. Between year 10 and year 12, ROE grew strongly and peaked in year 12. However, in the later period in year 13, ROE decreased slightly since we stopped repurchasing shares. 3.3 Stock price
Similar to EPS, the company's stock price has increased more than 80 times over 8 years, from $5.63 in year 6 to $469.68 in year 13. There are two key periods in which stock prices have a significant increase was the period from year 10 to year 11, the period from year 12 to year 13. Also, in the last year when the financial situation was more stable than in previous years, we started paying dividends and especially spending heavily in the 13th year. This has attracted investors to repurchase more shares, thus contributing to the increase in the value of the company's shares. 3.4 Credit rating Overall, during 10 years of operation, only 2 years, year 11 and year 12, is the credit rating of our company does not meet investors' expectations, the reason is that in years 10 and 11, we borrowed much more loans to invest heavily in stocks. The remaining years have met or exceeded the given expectations. A company's credit rating is influenced by three factors: Debt:Equity ratio is an indicator of a company's financial size, showing the ratio of two sources of capital (debt and equity) that a business uses to pay for its operations.. The smaller this ratio means that liabilities account for a small proportion of total assets
factors: P/Q ratio, market share and social responsibility. From year 10 to year 11, the image rating dropped off and by year 13 spiked again, equaling year 10 image rating due to the breakout market share growth in the last year. II. GAME SCOREBOARD IN 2 MAIN STAGES ( YEAR 6-YEAR 7; YEAR 8-YEAR 13)
1. Game scoreboard. This chart shows that our scores were a sharp increase from year 5 to year 13. To be more specific, the first period (y6-y7) nearly doubled from 52-92. Overall, our scores in the 2nd stage of the game scoreboard fluctuated significantly. Between years 9 and 10, our scores dropped as we continually invested heavily in research and development that reduced the company's bottom line. However, it is the intention of our company to create a strong foundation for the following years to make a leap to the market leader in terms of quality as well as to increase the company's ranking at the last stage. Besides that, our company predicts quite well about bonus points, so it is convenient to rise above the competition with the highest total bonus points in the
industry, at 5 points. This result shows that despite the fluctuations in our scores, we did a great job and delivered an excellent win after 8 years in business, becoming the market leader in the 11th, 12th and last year (according to the game scoreboard)
2. Key Performance Measures 2.1 EPS Year 6 and year 7: Overall, our EPS has gradually increased over this period. To be more specific, in year 6 due to the negative impact from the forecast table due to not carefully understanding the rivals then we fell profit of competitors, the EPS also dropped sharply to 0.51. However, the index continued to increase strongly in year 7. This shows that our company is efficient and on the right track. Year 8 to Year 13: Within 6 years (from year 8 to year 13), our firm has always met the investors expectations about EPS. This index increased year by year. EPS has made a breakthrough in the last 3 years. Especially, our EPS in year 12 was the highest compared to the rest of the companies in the industry. The explanation for this is because we properly evaluated the opponents, repurchased the stock price and met the marketing targets. 2.2 ROE
the average of the industry, then the next year we have grown to the industry average price of $80.27. Year 8 to year 13: Our firm has always met the investors expectations about stock price. In the last 3 years, Our stock price was the highest in the industry. Because our company did business very well and repurchase common stock on the market that boosted our stock price highly increased in this period. 2.4 Credit rating Year 6 and year 7: In terms of credit rating, from year 6 we failed to meet expectations, leading to the lowest scores in the industry I.E 16 and BII 14. Since year 7, it has exceeded the investors’ expectations. This shows that the company started to move up in a positive direction at a later stage. Year 8 to year 13: From year 8 to year 10, we met the expectations of investors (A-). But in the next 2 years (year 11 and year 12), our firm failed to meet the IE. Explanation for this failure is because we aimed at getting high EPS and ROE score, thanks to the share buyback in this period. In the last year, we focused on meeting the IE of credit rating due to the score from IE and BII. 2.5 Image rating
Year 6 and year 7: In this period, D.C company’s image rating is higher than many rivals in our industry. Since it had more market share approximately 16%. Although, we assume that the image rating still was not strong enough to pull the overall score up. So in the next stage, the company changed its new strategy to be more effective. Year 8 to year 13: In year 10, our image rating increased from 73 to 75 due to changes in the company's strategy. Within 6 years, image rating was not what we wanted to get a GTD score. Our strategy aimed at achieving the highest possible profit. III. ANALYSIS OF COMPETITION IN THE INDUSTRY IN 2 STAGES (Year 6 - 7 & Year 8 - 13)
1. Product Quality 1.1. AC Camera
In addition to P / Q, the model of AC Camera plays an important role in increasing the quality factor. Between years 9 and 10, the AC Camera model underwent significant modification. During these two years, AC Camera aimed to maximize profits at the lowest possible cost. To get the special contracts, we increased the AC's model much over the industry norm. Increasing the Model serves two purposes: the first is to enhance the quality of our best cost strategy, and the second is to raise the Value Index score so that we may receive a great offer. 1.2. UAV Drone
For UAV Drone, starting from year 6, the company oriented to develop this product to the high-end line. It can be seen from the chart that the P/Q ratio and product models increase year by year as well as have a large gap compared to the industry average. We have tried our best to improve product quality year by year to be exclusive in the premium segment.
- From year 6 to 7 : There are pricing variations between companies. During these two years, the price of D.C firm remained at the second or third lowest level in the business, in keeping with the company's high quality, competitive pricing strategy.
- From year 8 to 13 : AC rates change a lot between years 8 and 13. The figure indicates a sharp increase in the price of D.C. in year 8. The reason for this is that AC's strategy changes in year 8. From year 9 to year 10, the price lowers again to match the best cost method. However, starting in year 11, the price tends to rise since AC begins to pursue the goal of leading in terms of quality. It is clear to observe that in years 8 - 10, D.C has pricing that is comparable to A and F. Except for year 11, the subsequent years also had pricing clashes with several firms. 2.2.2. Asia - Pacific & Latin America Prices for AC Camera goods are cheaper in these two markets than in the preceding two. This is because these two markets are more price sensitive. The difference is significant, ranging from $5 to a dozen dollars.
- From year 6 to 7 : There are pricing variations between businesses. During these two years, the D.C. company's pricing remained among the second or third lowest in the industry, in keeping with the company's goal of excellent quality at affordable costs.
In two less sensitive markets, North America and Europe - Africa, the price of the product increases year by year:
- The period from year 6 to year 7: Prices are in the industry average between $1700 and $2000. In this segment, D.C Company has many direct competitors.
- The period from year 8 to year 13: At this time, the company's product quality has been greatly improved and the price has also increased, the highest in the market, ranging from $2400 - $2600. D.C Company no longer has a direct competitor. The business is largely dependent on the company's team to focus on executing the set strategy (market leader in quality and leader in price). 2.2.2. Asia - Pacific & Latin America In general, the strategy of leading the market in terms of quality and price is also implemented in these two markets. Because Asia - Pacific & Latin America are two extremely price-sensitive markets, the price level of the whole industry is one level lower than that of North America & Europe - Africa.
