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Innova Glo Bus Presentation
 

Innova Glo Bus Presentation

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Work Sample. Company Strategic Analysis.

Work Sample. Company Strategic Analysis.

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    Innova Glo Bus Presentation Innova Glo Bus Presentation Presentation Transcript

    • Innova
      Simply Innovation®
      Ten Year Review
    • Innova
      Innova In The News…
      Simply Innovation ®
      Innova
      Innova
    • Global Operations Summary Year 15
      North America
      Retailer Demand
      EL: 875,000
      MF: 135,000
      Market Share
      EL: 32.9%
      MF: 21.8%
      Europe/Africa
      Retailer Demand
      EL: 933,000
      MF: 93,000
      Market Share
      EL: 31.5%
      MF: 16.6%
      Asia Pacific
      Retailer Demand
      EL: 737,000
      MF: 76,000
      Market Share
      EL: 29.6%
      MF: 14.6%
      Plant Assembly
      Entry Level: 3,220,000
      Multi Level: 399,000
      In-house: 3,604,000
      Outsourced: 15,000
      Latin America
      Units Sold
      EL: 801,000
      MF: 95,000
      Market Share
      EL: 34.4%
      MF: 20.6%
      Innova
      Simply Innovation®
    • Net Revenues
      Innova
      Simply Innovation®
    • Earnings Per Share
      Innova
      Simply Innovation®
    • Return on Equity
      Innova
      Simply Innovation®
    • Stock Price
      Innova
      Simply Innovation®
    • Credit Rating
      Innova
      Simply Innovation®
    • Image Rating
      Innova
      Simply Innovation®
    • Strategic Vision
      Innova
      Simply Innovation ®
      Innova will build a loyal customer base in two strategic target markets by providing a good-quality entry-level camera at a price lower than competitors. We will provide an excellent-quality multi-feature camera for consumers who are looking for nothing but the best.
       
      Our overriding goal is to maximize shareholder value. We believe that Innova will perform its best if its employees are highly valued and appreciated. Innova will generate sustained competitive advantage through long-term investments in above-average employee compensation, productivity increases, and research & development.
    • Innova
      Performance Targets
      Simply Innovation ®
      Innova Forecasts: Stock Price and EPS
      Innova Forecasts: Return on Equity
      Innova Forecasts: Image Rating
    • Innova
      Entry Level Strategy
      Simply Innovation ®
      Continue to
      be the LOWEST cost digital
      camera in every market we serve
      Vision
      Goal
      High Margins
      Sustainable Growth
      SIMPLICITY
      COMPETITIVE
      QUALITY
      MODEST
      DESIGN
      LOW MARKET
      PRICING
      Strategy
      Low Cost
      Efficiency
      Global Presence
      Strong
      Cash flow
      Foundation
      Year 6-9
      • Best cost strategy
      Strategy Evolution-Year 10-15
      • Low cost strategy
    • Innova
      Multi Level Strategy
      Simply Innovation ®
      Continue to
      be the BEST QUALITY digital
      camera in every market we serve
      Vision
      High Margins
      Sustainable Growth
      Goal
      SUPERIOR
      DESIGN
      ABOVE AVERAGE
      QUALITY
      MASS
      MARKETING
      HIGH END
      PRICING
      Strategy
      High Quality
      Efficiency
      Global Presence
      Strong
      Cash flow
      Foundation
    • Innova
      Production Strategy- Workstation Capacity
      Simply Innovation ®
      We committed to assembling as many units as possible in-house
      We maintained above-average workforce compensation for most of the simulation (through year 13)
      Utilized temporary employees during the peak production season, Quarter 3
      Number of Installed Workstations
      Workstation Utilization Rates
    • Innova
      Production Strategy- Labor & Workforce
      Simply Innovation ®
      Prioritized in-house production over outsourcing
      Completed permanent hiring at the beginning of each year
      Outsourcing was only necessary in rare instances when actual demand outperformed management’s projected demand
      Maintained accurate forecasting
      Total PAT Compensation
      Production Costs, In-House vs. Outsourced
    • Innova
      Financial Strategy
      Simply Innovation ®
      Utilized positive cash flows
      Reinvest in the business
      Reward our shareholders
    • Innova
      Financial Strategy
      Simply Innovation ®
      Use of debt paralleled policy on dividends
      Long Run: Pay down debt in order to better reward shareholders
      Short Run: Early years carried debt on books in order to better invest in the company’s future
    • Innova
      Entry Level Competition
      Simply Innovation ®
      Strongest competitor during the last two years was Company C
      Changed their strategy in year fourteen to become a low-cost provider, placing themselves in direct fierce competition with Innova.
      Our second closest competitor was Company E
      Had a best cost strategy
      In certain years, Company E threatened to steal demand and market share
      Never threatened to surpass Innova’s performance as a whole
    • Innova
      Multi Level Competition
      Simply Innovation ®
      Companies C and E were our strongest competitors
      Pursued a differentiation strategy
      Innova stayed ahead of the competition
      Quality
      Set standard as the industry leader
      Successfully reached its strategic goal of designing a camera for consumers who are looking for “nothing but the best,”
      Companies C and E became market followers and provided a camera for people who were looking for “almost the best” quality at a slightly lower cost.
    • Innova
      Actions To Take- Entry Level
      Simply Innovation ®
      Continue to reduce our costs to keep competitive edge
      Strive to offer the lowest-price entry-level camera and be the low-cost leader
      Investors expect an image rating of 70 or above
      Will not lower the quality of our cameras below 2 stars
      Will not jeopardize our brand reputation to win a cutthroat rivalry
      Constant fierce price wars can result in the destruction of the entire industry
      Not willing to sacrifice long-term viability in order to achieve by destruction
    • Innova
      Actions To Take- Multi Featured Level
      Simply Innovation ®
      “Stay the course”
      Continue to assemble the highest level quality cameras
      Maintain the position of industry leader though continuous investment in research & development
      Remaining flexible and innovative
      “These investments will give us a first-mover advantage in whatever changes affect the industry’s shifts in demand.”
      -Dan Wesolowski
      CEO
    • Innova
      Lessons Learned
      Simply Innovation ®
      Demand and Market Share
      In year eight we realized how important it was to focus on decisions that would increase our demand
      Found that the elasticity of demand in the entry-level segment is above 1.0, which means that total revenues increase when price is lower and that consumers in our target markets were fairly sensitive to price
      Technical Support
      The more money we would invest in tech support, up to a certain extent, communicated to customers how much Innova stands behind its products.
      This made a great impact in our product demand
      From Year 9 forward, we concentrated meticulously on the precise amount to invest in tech support
      Over time, we increased quarterly tech support per unit from $3.00 to around $5.00
    • Innova
      Lessons Learned
      Simply Innovation ®
      The Human Factor
      Above-average employee compensation resulted in a higher quality of work
      Contributed to our profit margin by lowering the warranty claim rates and production costs
      Savings allowed us to maintain the lowest price in the entry-level segment
      Improved employee dependability
      Lowering absenteeism
      Delivering their best work quality on a consistent basis.
      Innova’s human resource policies indirectly resulted in high customer loyalty and a high company image
    • Innova
      Lessons Learned
      Simply Innovation ®
      Production Capacity
      Took a risk by expanding production capacity
      But if successful – like Innova’s was – the rewards can be high
      Recommendation to other companies is that they should outsource processes that they perform at an average or below-average level.
      Those processes which they do well – their core competencies – should remain in-house.
      Foreign Exchange Rates
      Affected our company’s profits more than we expected
      We underestimated the sizable amount of the effect
    • Questions?
      Innova
      Simply Innovation®