In the beginning, Gnarly Digital focused on having the highest P/Q rating possible at a reasonable price to attract customers. We maintained a high price on our multi-featured cameras and a lower competitive price on our entry-level cameras. We offered an array of featured, more options on the multi-featured to maximize profits on customers who really know cameras. Our strongest markets where Asia/Pacific and Europe/Africa, we had more competitive prices, more featured, more promotions, and overall a more attractive product in this region. As well we fully used our outlets of distribution in these two strong regions while less was available in North America and Latin America.
[...] Exhibit Years 10-13 Stock Price, EPS, Dividends, Credit Rating, Image Rating, Market Share, Investor Expectations, and Best-In-Industry Scores. Analysis: From looking at our stock price and EPS numbers, Year 11 was significantly better than the other years. Year 11 was when we decided to differentiate ourselves from the competition and offer lower quality, lower priced cameras. This obviously helped our performance, however by looking at Years 12 and 13, we could not sustain the advantage we created. On a positive note, our credit rating remained at an since we acquired no debt during these years. [...]
[...] Exhibit Strategy in Detail & SWOT Analysis Strategy: Lower our operating costs by lowering our P/Q ratings on both camera models Lower our prices Expand our retail coverage as much as possible in all regions Pay above industry average dividends Increase our marketing and technical support budgets Increase revenues Increase our market share in every region Take advantage of the exchange rates when possible Maintain a high credit rating Increase our net profits Differentiate ourselves from the competition Offer camera models with P/Q ratings and prices that are not offered by competitors Achieve higher ranking over the competition Try to avoid the new investment in PAT workstations if possible SWOT Analysis: Strengths Lower than industry average costs High Credit Rating Continually increased revenues Financial position- no debt High cash on hand Entry level camera's market share has been increasing Weaknesses Low market share compared with the industry Negative net profits for entry level cameras in some regions High marketing costs per unit High labor costs per unit No significant competitive edge Opportunities Available niche market opportunities Most companies are high priced; easier to keep our prices low Exchange rates Threats All other companies are bigger Companies are trying to be low price providers Exchange rates Exhibit Competitive Edge Analysis Digital Camera Industry Success Factors (payoff to customer in bold) Price for both cameras P/Q rating Warranty Features Low costs Technical support budgets Advertising budgets New product R & D expenditures Promotions Availability PAT productivity Debt management Steady increase in the following: Earnings per share Stock price Credit rating Image rating Net revenues Return on equity Our Competitive Edge Price for both cameras *Our only other advantage is our low cost per unit compared to the industry average* Exhibit Year 13 vs. [...]
[...] Exhibit Years 10-13 Horizontal Analysis (in thousands) Analysis: From looking at this analysis, Year 11 was our best year because we had the largest net income, which was higher than Year 10. We were also able to decrease our production costs by from Year 10 to Year 11. In Year 11 we increased our marketing and advertising budget, which is shown by a 46% increase in marketing costs. Although we had a increase in sales from Year 11 to 12, our net income decreased due to the increase in total costs. [...]
[...] Even though our total costs decreased from Year 12 to 13, our sales decreased even more, which led to the decrease in operating profit and net income. Exhibit Years 10-13 Ratio Analysis Analysis: One of the better ratios of our performance is the current ratio, which shows that our company has very good liquidity. This ratio has been improving since Year 10 mainly because we have no debt, but we have large sums of cash. Compared with the industry average, we are ahead. [...]
using our reader.