Vous êtes sur la page 1sur 20

TEAM ERIE

EMBA 230: Management of Technology and Innovation


ROBERT PAUL ELLENTUCK

INITIAL STRATEGY
BROAD DIFFERENTIATION

Maintain strong presence in every market segment Distinguish products with excellent design, high awareness, and easy accessibility Keep products fresh and exciting by offering improved size and performance Keep prices competitive Expand capacity as needed and monitor inventory levels

DRIFT IN STRATEGY

Create new products for high end market segment Spend less on promo/sales budgets Forecast sales using market segment growth rate Set production to avoid second shift/overtime Finance capacity for new products with loans

COMPETITOR ANALYSIS GRID: ERIE

High
Round 0 Eat @ 16%, Ebb @ 20%, Echo@ 17%, Edge@ 20%, and Egg@ 19% Round 3 Emu@ 31% Round 7 Emu@ 24%

Our Ability to Penetrate Market


Round 6, 7, & 8 Exige never made it to market Round 3 Edge@ 7% Round 4 Edge@ 3%

Low Low
Our Ability to Develop Superior Products

High

COMPETITOR ANALYSIS GRID: COMPETITORS

High

Their Our Ability to Penetrate Market

Round 0 Acre@ 20% Round 1 Coat@ 27% Round 2 - Acre@ 28% Round 6 Cedar@ 26%

Round 2 Cid@ 28% Round 5 Bevis@ 26% Round 7 Buzzcu@ 28% Round 8 Bevis@ 27%

Low Low

No Results competitors performed well in the High-end, Performance, & Size market segment

No Results competitors performed well in the High-end, Performance, & Size market segment

Their Ability to Develop Superior Products

High

LESSON LEARNED: MARKET SEGMENTS


TRADITIONAL & LOW END

5 market segments 2 make up largest percentage of total industry Performance correlated to what percentage of these we captured Focus should have been on 2 pivotal segments Products should have been revised for these segments New products should have been created to appeal to these segments Production should have been carefully analyzed for these segments Promo/sales budgets should have been spent primarily on these segments

LESSON LEARNED: MARKET SEGMENTS

Percentage of Erie Sales in Traditional and Low Segments Compared to Total Market Share

MH1

LESSON LEARNED: FORECASTING TOO LOW OR TOO HIGH

Sales forecasts were based on total industry growth rate instead of actual sales in each segment

Led to overly optimistic production forecasts excess inventory carried from year to year without changing production levels Reaction was to cut forecasts and production drastically Initial production cuts were through sale of just acquired manufacturing capacity and automation Later direct cuts to production led to stock outs in almost every product, which lost market share

Slide 8 MH1 Need to explain the implications of the sales forecast and the production forecast variations (two separate bullets)
Hackett, Meredith , 12/15/2010

LESSON LEARNED: FORECASTING


Sales Forecast Variance Production Forecast Variance

LESSON LEARNED: PRODUCT POSITIONING

PERCEPTUAL MAP

Segments have sweet spots that are not all in the center Products overlapped due to R&D specs and pricing Market share was split, products cannibalized sales of other products Ideal new product placement is high end and then allow drift into traditional and low end

LESSON LEARNED: PRODUCT POSITIONING

Round 6

Ebb straddles low end/traditional Echo/Emu straddle traditional/high end

LESSON LEARNED: PROACTION VS. REACTION

PLAN STRATEGICALLY

Round 3 was Eries most successful round After Round 3, decisions were made primarily as reactions to competitors R&D specs, prices and promo/sales budgets were adjusted to match competitors Not a good long term strategy Our unified strategy, built on market and competitor analysis, was essentially abandoned, and playing reactively led to declining results

MH2

LESSON LEARNED: PROACTIVE VS. REACTIVE

Promo/sales budgets, pricing, and production mimicked competitors Production increased and decreased in reaction to results and competitors Failed to recognize signs and plan for recession which led to reactionary actions

Slide 13 MH2 Amir to provide specific examples of misguided reaction


Hackett, Meredith , 12/15/2010

FUTURE OUTLOOK
Going forward, Erie management has created a unified strategy for R&D, production, marketing, and finance R&D

Existing products will be revised to appeal to target segments and capture greatest market share Products will be allowed to drift from high end to traditional to low end New products will be developed to appeal to two main segments (traditional/low end) to capture most sales Make proactive rather than reactive decisions

FUTURE OUTLOOK
MARKETING
Conduct cost benefit analysis of marketing expenditures on the introduction or repositioning of every product Work closely with R&D and production to ensure that all new products have a market and can be produced at a profit Create a marketing budget Make proactive rather than reactive decisions

FUTURE OUTLOOK
PRODUCTION

Forecasts will be developed based on actual product sales Inventory levels will be maintained to avoid carrying costs and stock outs Production capacity will be purchased for new products Conduct cost benefit analysis of every production decision and expenditure Work closely with R&D and marketing to ensure that all new products have a market and can be produced at a profit Make proactive rather than reactive decisions

FUTURE OUTLOOK
FINANCE

Require cost estimates, budgets, and detailed cost benefit analysis of all decisions from all departments and verify figures/actively challenge soundness of the numbers Participate in all decisions which require funding or impact finance Pursue a more conservative financing strategy Work with each department to learn their budgeting needs and determine what can and cant be met Make proactive rather than reactive decisions Finance needs to lead the company not follow it

COPYRIGHT 2010. ALL RIGHTS RESERVED. NOEMI ARTHUR MOO HACKETT AMIR MOORE ROBERT P. ELLENTUCK
THE COPYRIGHT HOLDER EXPRESSLY PROHIBITS ANY AND ALL COPYING, FAXING, SCANNING, XEROXING, REPRODUCING, TRANSMISSION, DISSEMINATION, FORWARDING, PRINTING, SUBMISSION (EITHER ELECTRONICALLY OR OF A SCANNED OR OTHERWISE REPRODUCED COPY, OR OF THE ORIGINAL COPYRIGHTED MATERIAL, A COPY OF THE COPYRIGHTED MATERIAL, OR OF A PORTION OF THE ORIGINAL OR COPIED COPYRIGHTED MATERIAL), OR ANY AND ALL OTHER ACTIONS: ELECTRONIC OR OTHERWISE, OF ANY PORTION OF THIS COPYRIGHTED MATERIAL OR THE ENTIRE COPYRIGHTED MATERIAL, WHICH MAY IN ANY WAY VIOLATE THE RIGHTS OF THE COPYRIGHT HOLDER. SUCH PROHIBITION INCLUDES THE ORIGINAL COPYRIGHTED MATERIAL, A COPY OF THE ORIGINAL COPYRIGHTED MATERIAL, A PORTION OF THE ORIGINAL COPYRIGHTED MATERIAL, A PORTION OF THE COPIED COPYRIGHTED MATERIAL, AN ELECTRONIC VERSION OF THE COPYRIGHTED MATERIAL, OR ANY OTHER POTENTIAL VERSION OF THE COPYRIGHTED MATERIAL (WHETHER THE TECHNOLOGY EXISTS AS OF THE COPYRIGHT DATE, OR IS YET TO BE INVENTED). THIS PROHIBITION EXPLICITLY EXTENDS TO ALL OF THE ABOVE ACTIONS, BUT IS IN NO WAY LIMITED TO THEM. ANY USE OF THE COPYRIGHTED MATERIAL, IN ANY MANNER, CAN ONLY BE WITH THE PRIOR CONSENT AND AUTHORIZATION THAT IS BOTH WRITTEN AND EXECUTED BY THE COPYRIGHT HOLDER AND THE OTHER PARTY, RELATING SPECIFICALLY TO THIS COPYRIGHTED MATERIAL. THIS COPYRIGHT, AND ALL OF THE PROTECTIONS THAT IT AFFORDS THE COPYRIGHT HOLDER EXPLICITLY EXTEND TO ANY COPYRIGHTED MATERIAL, IMAGE, FILE, DATA, OR ANY OTHER ATTACHMENT IN ANY FORM, ELECTRONIC, PRINTED, OR IN ANY OTHER FORMAT, THAT ARE ATTACHED TO THIS COPYRIGHTED MATERIAL IN ANY MANNER OR FORM, AND TO WHICH THE COPYRIGHT HOLDER HOLDS OR IS ELIGIBLE, UNDER THE WIDEST POSSIBLE INTERPRETATION, TO HOLD A COPYRIGHT TO. THE INTERPRETATION OF THE COPYRIGHT HOLDERS RIGHTS SHALL BE AS BROAD AS THE LAW ALLOWS, AND IN NO WAY SHALL BE LIMITED BY THE RIGHT OR RESTRICTION NOT BEING STATED. THE COPYRIGHT SHALL ALSO EXTEND TO ALL FUTURE PROTECTIONS, AS THEY BECOME AVAILABLE. THIS COPYRIGHT IS IN NO WAY INTENDED TO INFRINGE ON THE RIGHTS OF ANY OTHER PARTY.