Regaining Market share 5 Evaluation of options 1. It will be feasible only when the company puts in resources for development of high quality product to be launched in six months and is able to charge a premium 6 on it.
Also brand loyalty for this category of product solely depends on features and quality offered.Regaining Market share 5 Evaluation of options 1. It had planned to launch its new product Aerial with additional features like altimeter and barometer. The premium thus charged has to be justified by the value proposition of the product. This will make up for the losses due to current product. Currently the company is in 2nd quadrant where it is trying to launch a new product in an existing market and thus should follow a Product Development strategy. Currently the company is in a Product Development stage Exhibit I where it is introducing a new product in an existing market. Responding to customers needs 2. High price will not help in gaining the market share due to the very price sensitivity of the product. Customers involvement in the purchase decision process is high in this category. Many of the factors that are seen in the TerraCog meetings are contributing to dysfunction, including the lack of strength that is being displayed by Richardson. As a result, TerraCog has started losing its market share.
By not launching the current version of Aerial but launching it after 6 months with improved features company assures high quality and high price thus gets an ability to charge a premium.
High price will not help in gaining the market share due to the very price sensitivity of the product. Carry out a market survey to gauge customers expectation and thus giving ideas for the development of new product 2.This strategy will also put the company in the drivers seat rather than being a mere follower in the market. Related Interests. While Richardson may not be in charge of the company, she is in charge of the meeting -and that means she needs to pay attention to how others are perceiving her and how seriously they are taking her and her desire to keep the meeting together and reach an agreement on the price of the GPS system. Under these circumstances company primarily needs a go-no go decision. Overall this strategy is sustainable in market where technology is changing rapidly. By not launching the current version of Aerial but launching it after 6 months with improved features company assures high quality and high price thus gets an ability to charge a premium. Thus the design team has come up with a new design for Aerial having the additional feature of satellite imagery. Delay the launch by six months and come up with a new and advanced product The kind of market the product caters to calls for quality product and the product development team has assured that it can come up with such product at a lesser cost in six months.
Sales force of the company will also face difficulty to pull it through. Assuming that customer may trade off speed for this feature, it will be just a matter of time that a new technology with improved speed hits the market and the very selling proposition of Aerial is wiped off.
However, unpredictability of the market makes this option risky and thus is not preferred. Related Interests. Thus the current design is not a proper response to customers needs.
This will make up for the losses due to current product. There are, however, many other factors that have to be addressed. This is a concern, because it is hard to indicate that one has a powerful position when the head table seat in a meeting is taken by someone else Wilkinson,