The ideal spot is that point where, all other things being equal, demand is highest.

At the beginning of the simulation, Traditional and Low End sell more units than the high technology
segments, High End, Performance and Size. Page 10 of the Capstone Courier, the Market Segment
Report, displays total industry sales.

Table 4 Beginning Segment Growth Rates

Traditional

6.1%

Low End

12.5%

High End

18.3%

Performance 15.3%
Size

14.4%

Able

Traditional

Acre

Low End

Adam High End

Aft

Performance

AgapeSize

3.1 Traditional Segment Buying Criteria (Round 0)

Traditional customers seek proven products at a modest price.

Age, 2 years importance: 47%

Price, $20.00-$30.00 importance: 23%

Ideal Position, performance 5.3 size 14.3 importance: 21%

MTBF, 14,000-19,000 importance: 9%

Industry Conditions Figure 3.1: Traditional Buying Criteria

Traditional customers give higher position scores to sensors located in the center of the segment
circle.

Traditional customers give higher scores to sensors in the 2 year range.

3.2 Low End Segment Buying Criteria (Round 0)

Low End customers seek low prices and well proven products.

Price, $15.00-$25.00 importance: 53%

Age, 7 years importance: 24%

Ideal Position, performance 2.0 size 17.6 importance: 16%

MTBF, 12,000-17,000 importance: 7%

Industry Conditions Figure 3.2 Low End Buying Criteria

Low End customers prefer inexpensive sensors with slower performance and larger size.

Low End customers give higher scores to sensors in the 7 year range.

3.3 High End Segment Buying Criteria (Round 0)

High End customers seek cutting-edge technology in size/performance and new
designs.

Ideal Position, performance 9.2 size 10.4 importance: 43%

Age, 0 years importance: 29%

MTBF, 20,000-25,000 importance: 19%

Price, $30.00-$40.00 importance: 9%

Industry Conditions Figure 3.3 High End Buying Criteria

High End customers demand cutting edge sensors with high performance and small size.

High End customers give higher scores to newer sensors.

3.4 Performance Segment Buying Criteria (Round 0)

Performance customers seek high reliability and cutting edge performance technology.

MTBF, 22,000-27,000 importance: 43%

Ideal Position, performance 9.7 size 15.3 importance: 29%

Price, $25.00-$35.00 importance: 19%

Age, 1 year importance: 9%

Industry Conditions Figure 3.4 Performance Buying Criteria

Performance customers emphasize performance over size.

Performance customers want sensors in the 1 year range.

3.5 Size Segment Buying Criteria (Round 0)

Size customers seek cutting edge size technology and younger designs.

Ideal Position, performance 4.3 size 9.9 importance: 43%

Age, 1.5 years importance: 29%

MTBF, 16,000-21,000 importance: 19%

Price, $25.00-$35.00 importance: 9%

Industry Conditions Figure 3.5 Size Buying Criteria

Size customers emphasize size over performance.

Size customers prefer sensors in the 1.5 year range.

4 Projected Interest Rates

Prime Interest Rate Round 1: 7.5%