The Excellent Consuting Group Coursework Example | Topics and Well Written Essays - 1000 words

The Excellent Consuting Group - Coursework ExampleThe revenue of product X5 was fairly stable but low, temporary hookup that of X7 was exceedingly low but exceptionally stable for the year 2011 and would be low up to 2015. Profit Like the revenue performance, X5 and X6 products meet the profit threshold while X7 continue to make losses. It is below bar to a tune of -$31million dollars. Total Income The breakeven point for the three products is determined by the resolved be, selling price and the hail of units sold. The total sales in 2015 cut down compared to sales realized in 2015. Similarly, the total revenue trim back. Since the fixed and R&D costs remained constant, the average profitability reduced from 10% to 4%. X5 income The sales and revenue reduced in 2015 as compared to 2014 showing a great reduction from 3% to 1% profitability. The fixed and R&D costs remained high. X6 income The revenue and sales reduced by almost half in 2015 as compared to 2014. The profits al so reduced from 16% to 10%. R&D costs were higher compared to the other products. X7 income This product realized increased revenues since sales went up. In contrast to the other products, variable costs increased while the total profits went up. The product was making losses but well performing when compared to Product X5 and X6. Market Information Sales The sales for product X6 was exceptionally on the rise from the year 2011 and 2013 but gradually reduced from the 2013 to 2015. ... Product Performance X6 is highly performing in the trade when compared to X5and X7. However, X5 is trim back in performance while X7 has stable performance. Market Report 2011 X5 Market Report The installed guest base of product X5 shows an increase from 2014 to 2015. The number of remaining customers has reduced while market saturation increased from 37% to 41%. First time customers reduced while repeat sales increased. X6 Market Report The installed customer base of product X6 shows an increase fr om 2014 to 2015. The number of remaining customers was exhausted while market saturation increased from 90% to 100%. First time customers reduced to zero while repeat sales increased. X7 Market Report The installed customer base of product X7 shows an increase from 2014 to 2015. The number of remaining customers has reduced while market saturation remained at 3%. First time customers and repeat sales increased. Proposed Alternative Strategy Suppose the prices of X5, X6 and X7 products are set at price $400, $360 and $cc respectively. Also by apportioning the research and development (R&D) allocations as follows X5(25%), X6(40%), and X7(30%). The additive profits for 2012 will be 192,479,522. The X5 is less expensive than other similar products in the market. X6 sales are in the growth phase of the product lifecycle. The majority of X6 customers have not yet purchased the product. The X5 compares more favorably with other tablets in the category. The cumulative profits for 2013 are 463,673, 489. The decisions for 2014 will be effective if X7 handheld is priced higher than competing products and is in the growth phase. There are many X7 customers remaining in the market. approximately of the customers for the X7