Andrew's Performance Summary
WindschitI, Megan OL - 421 STRATEGIC MANAGEMENT & POLICY
What is Andrews all about?
Andrews is a company that manufactures sensors that are marketed to other
manufacturers. The products that are created such as Able and Skill are put into devices those
other manufacturers sell. Andrews was created when the government split into a monopoly with
other identical investors. When a company is in a monopoly, important things such as
inefficiencies and poor product offerings are not brought to light because it brings on increased
costs that go to customers as well as mediocre products being sold because consumers had no
other options.
These sensors that have been created observe physical conditions. New sensor businesses
are coming to light every day in areas such as biomedical engineering and security. The products
here that Andrews is selling will be on a business-to-business market front versus being directed
to the consumer market. These sensors are included in products that customers sell.
Progress of the company
There are four main porter strategies and the one that Andrews focused on is the Niche
High Tech Differentiator. This strategy focuses on creating a competitive edge in the market.
It is driven by an integrated strategy to ensure that customer loyalty is achieved and the
business gains the competitive edge on diversity to stand apart in a similar market. By doing
this, it increases the market which promotes new high-tech technology products and increases
sales revenue. (Competing based on quality)
The company plans to focus on high technology segmentations such as high-end
products, strong performance, and size. With this strategy, the company gains a competitive edge
by distinguishing the products being sold with proficient design, easy customer accessibility, and
high awareness. In this niche differentiator, Andrews wants to focus on developing R & D
competency that keeps both products (Able and Skill) introduced with new designs and keeping
up to date with customer desires. Each product will keep in line with the market, improve its size
and overall performance as well as price products above competitor averages, and expand to
create higher consumer demand.
In the R & D section, the goal is to offer technology-orientated consumers products that
match their ideal desires in age, reliability, and positioning. In marketing, the business spends the
funds on promotional advertising and generation of sales in the technology aspect. The goal here
is for customers to see the fantastic design with ease of use. When the product reaches the low-
tech segment, the product will want to exit peacefully. In production, the capacity is developed
where it meets the demand. When the products are positioned correctly, there can be increases in
automation levels to improve profit margins. This gets reflected in the perceptual map of the
high-tech products. Within this strategy, finance will look to invest in stocks and cash from
operations. When the cash flow is positive, the company can provide dividends and begin to
retire some stock. Able is starting to get older so