Wednesday 29th, 1997
FIRM O
Team Members
Silak CHAMNIANWECH
Djunyanto THRIYANA
Gary WALSH
Oming WIRASAKTI
EXECUTIVE SUMMARY:
Firm O has developed a portfolio of three products in the Sonite market over the course of the Markstrat competition. During the course of the competition, Firm O has lost significant market share and worked hard to rebuild a product portfolio that returns a substantial net contribution and places it in a position of power in relation to it’s competitors.
In this paper, Firm O will provide an analysis of how it’s product portfolio has developed and how their portfolio compares in relation to their competitors in the Sonite market using the BCG model as a basis for comparison. Following this analysis, the paper will analyse the Sonite and Vodite markets and their individual segments in terms of consumer perceptions, size, growth potential. After considering these markets, the opportunities and threat that exist within these markets.
Once an analysis of these external factors has been evaluated, the paper will provide a study of the internal strengths and weaknesses of the company. This will be done on a general basis, from a financial viewpoint and the relative strength of the individual products within their product portfolio.
The paper will conclude with a presentation of Firm O’s future strategies for their products, production, pricing, promotion, distribution and resource allocation. Based on these assumptions, the Firm will provide it’s long term plans to ensure its financial well being over the coming periods.
ECONOMIC ANALYSIS
1. Economic Analysis. Based on previous periods and market study forecasts, expected inflation for the next period (9) will remain the same ( 2 % ), in addition, the GNP growth rate remain the same at 2%. Under these economic conditions, production costs, prices, advertising and sales expenses will remain relatively stable.