Time Warp 2 Essay Example | Topics and Well Written Essays - 1000 words

Time Warp 2 - Essay ExampleThis tool helped me achieve my goal of yielding high profits for Handheld, Corp. In this report, I include my analysis, the strategies I used, and what factors affected revenues for product X5, X6, and X7. Time Warp 1 Maribel P. Jabido Academia Research May 8, 2011 Analysis On the PDA simulator I had a net score of 1,185,800,553. I did better than Joe Schmoe by 20,890,196. I have observed that Joes strategy was a lazy implementation of trade. If he took the time to analyze the performance of a product and what prices were appropriate to set, he would yield high profits. I have made numerous attempts using a simulator to prove that my strategies worked better. I followed the advisors analysis and used it as my guide in pricing and allocation of R&D. One strategy I used for marketing hold products is market segmentation. This is implemented by providing handheld products in different categories (X5, X6, and X7) to serve specific needs of target customer s and increasing market share. Even with the discontinuation of X5 handheld in 2009, it was a strategy to market better available products to attract buyers. Pricing strategy was also what Ive used relative to R & D allocations to generate profits. For instance, X5 sales were starting to decline. In 2008, I did not drop the price significantly or I would lose a treat of money. I was able to keep customers who purchased the X5 handheld for $240. Then, I decided to discontinue the product the following year to avoid more losses. R&D allocations were a bit tricky. I used the advisors analysis to manipulate the allocations. For example, when X5 was discontinued in 2009, I kept the same prices for X6 and X7 as of 2008 in 2009 and change magnitude their R&D allocations to 30% and 70% respectively. The tremendous Jabido 2 increase in R&D had a positive impact on revenues. However, in 2008, I decided to distribute R&D of 25% equally to X5, X6, and X7 handheld products. When I tried to red uce X5 R&D to 10%, I had a higher loss. With 25% R&D I was able to avoid the loss of -9,870,920 and reduced it to a loss of -$6,176,598. If I didnt coiffe that 10% R&D, it would affect profits for 2009. I also based my analysis on the product performance and on what level they are in terms of sales. For instance, X7 handheld was in the growth phase in 2006 with a profit of $3,199,108. The following year, I reduced its price to $200 and allocated a higher R&D of 25%. The result was phenomenal. I had a profit of $23,555,939. Maintaining the price and R&D the following year, the profit for X7 was more than doubled. Heres the breakdown of prices, R&D allocations, and profits for X5, X6, and X7 2006 I increased the prices for all handheld products and decreased their R&D. As a result, advisory said X7 handheld was in the growth phase and potential X7 customers were new customers. X7 handheld performance was holding steady while X6 was priced the same as other competing products. Joe gai ned a higher profit of $295,185,249 in 2006. He performed better with all X5, X6, and X7 handhelds because the prices were lower although it was temporary. Jabido 3 2007 Since X6 performance was better than that of competition, I decided to maintain the price and R&D and it paid off as I had a higher profit. Joe sold X6 for only $400 this year which he couldve made profit by marketing them slightly higher. However, X5 sales were declining so I slightly lowered the price which is