Performance

As I sensor has adopted a hybrid strategy there are many different elements of the two strategies that have been adapted into I sensor’s business strategy. These elements were demonstrated in I sensor’s business decisions, as some of the operations that occurred reflect one of the two strategies used to create I sensor’s business strategy.  

A few different elements of a differentiator strategy was implemented when making business decisions, some of these elements include the frequent research and development of products so products met ideal customer requirements. Secondly, large amounts of investments were made in marketing and promoting products to customers, to ensure that customers knew about the new and existing products, so that customers were able to purchase these products. By investing heavily in marketing I sensor is able to build a reputation of a differentiator.  

Although various elements of cost leader strategies were used in certain products, such as the low end and traditional segments. A few of these elements are keeping material and labour costs low, resulting in improved contribution margins and lower second shift costs. To do this I sensor lowered the MTBF of the low end and traditional products and invested heavily in automation. To reduce material costs while keeping up with customer expectations; The I sensor management team has decided to invest a lot into Total Quality Management in the early rounds. Even though I sensor focused on increasing contribution margin, the management team decided to charge a premium price on most of the product segments based on customer expectations and not focus on providing a competitive price.

By analysing each product and the growth rate for the relative segment, the management team were able to determine the demand for each product, according to the customers buying criteria. This helped the management team decide if their products needed to undergo research and development (R&D). In order to improve profitability and unit sales most products required R&D to ensure the product met the customer buying criteria. To ensure I sensor is able to increase unit sales, it must be able to meet the customer buying criteria.