2020 Competitive Analysis Report

Andrews

2020 Competitive Analysis Report

Business Strategies WCOB 3016

Dr. Webster

7/29/2015

Nathan Moran
Hongzao Song
Micah Bender
Ryan Martin

Tanner Faulkner

Andrews
2020 Competitive Analysis Report

Mission Statement

        Through connecting with equipment manufacturers, our mission is to provide an array of quality sensors to satisfy every potential customer’s needs.  

Strategic Theme

        Our strategic theme is a combination of broad cost leadership and product differentiation to compete for the highest combined market share. Recognizing that this balance is hard to achieve, our main effort is to invest in automation and capacity to provide products to the low-end market segment as well as the traditional market. This investment will allow use to compete for market share in these segments with the flexibility to lower prices. Other product lines that serve high end, performance, and size specific customers will continue to developed however we to not intend to grow market share. This aids in gaining market share in the low-end segment and allows us to continue providing differentiated products to customers.

Table 1: 2020 Actual Results vs. Pro Forma Projections

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Actual results were a positive surprise .The forecast included a floating inventory, as a result the proformas illustrated less sales than were actually generated. As shown in table 1, actual sales were $10,253 million more than projections. Exceeding projections resulted in an excessive cash position that puts to question our efficiencies as a company. Selling more than projected is not concern, but in the coming year we intend to lower our ending cash position while maintaining an efficient inventory. The sales forecast will continue to be optimistic so that we maintain our goals to provide to each potential customer. In 2018 the company maintained a customer buying criteria rating in line with our competitors yet we exceeded sales by capitalizing on undersupplied markets. In the three differentiated segments we held more market share than we had the potential for because forecast attempt to create inventory, which in return allowed us to capitalize on undersupplied segments.
        The index score received when the company is compared to the highest performance measures in the industry was 85.1 basis points. Market share leader was only half of a percent higher than ours however or return on each sale was considerably less than the industries highest value. Following ROS, returns on assets and equity were also considerably lower than the industries highest. These figures illustrated below in table 2 are evidence that our company is becoming increasingly inefficient when compared to competitors.  For the year we did manage to maintain the highest market capitalization in the industry and we will continue to focus on maintaining this competitive advantage. In the coming year the company will improve on its return on sales, assets, and equity by decreasing our ending cash position. Automation will have reached a level of 10.0 for the low end product and will have 2600 in capacity. This will allow use to start cutting back the price of this product so we may sell more than any other competitor while using the capacity that has been purchased. In 2018 the company had capacity that was not used which was a key factor in ROA. For the coming year we intend to utilize second shift capabilities. Our differentiated products are lagging behind the cutting edge so we expect to lose market share for the three differentiated products. This is mainly a result of excessive R&D time that we have not yet countered. We will Reduce R&D time through TQM so that he can make our differentiated lines more competitive in future periods.