5-Year Strategy Plan to Control Performance Goods Market
1.
2. Table of
Contents
Vision, Mission, Values 3
Strategy 4
5-Year Strategy Plan 5
A Letter from Erie Executives 6
Industry Analysis 7-9
Products, Regions, & Markets 10-11
Metrics 12
Report of Financials 13-14
Financial Highlight 15
Executive Bios 16
2
3. Vision
To give accessible
health information to
people all around the world
Mission
Provide customers with a high
quality and reliable portable genetic
testing device through research
and innovation
Values
Integrity | Teamwork| Quality | Innovation | Passion | Honesty
We work together as a unit to create the best genetic testing solutions for our customers
As a firm we are honest in our dealings both with our customers as well as the other firms
with which we work
We value the quality of our product as we believe that a quality product is something that
we promise to our customers
As a firm, innovation is the competitive edge that keeps us at the forefront of our industry
We care deeply about our product and the people whose lives are made better by it
Teamwork
Quality
Innovation
Passion
Integrity
Honesty We are straightforward with our dealings with those we come in contact with
3
Strategy
4. Economic
of
Logic
Arenas
VehiclesStaging
Differentiators
Staging
• Constant updates to
performance products to
make sure they have the
highest speed and accuracy
on the market
• Development of new products
every few years to keep
perceived age low
• Increased marketing in
Europe to gain higher
market penetration
Arenas
• Performance and budget-based
products
• Products are sold in
Americas and Europe
• Push performance based
products to be sold first in
the market
Vehicles
• Direct exportation into the
European market
• Create strong Internal Development
through increasing automation
and capacity each year
Differentiators
• Products will be highest quality
on the market (speed and
accuracy)
• Products are priced to create
highest customer satisfaction
Economic Logic
• Performance goods have higher margins
• Highest customer satisfaction allows us to
charge a higher price for the product
• Lower costs from plant automation
4
Strategy
5. • Focus on keeping our
existing products up to date
with customer specifications
• Develop new products that
stay on the cutting edge of
technology
• Search for ways to further
differentiate our offerings from
those of our competitors and
gain more market share
• Maintain our status as leaders
in the performance sector in the
Americas and Europe
• Create a tiered system of
performance products, having
products for the ultra-high end
space in the market as well as
for those consumers that don’t
require such a high level of
technology
For the next 5 years, we as a company have
decided that our strategy to provide high
performance products in the performance
markets in the Americas and Europe will remain
the same. In order to do this, over the next five
years, we plan to invest in research and
development. We also plan to continue to make
plant improvements so we can accommodate
the increase in demand.
In the future, we will continue to serve the
performance market in the Americas and
Europe. We have discontinued our only budget
product, “Eat”, and we don’t plan on entering
the budget market again. Within the next five
years, we will continue updating our existing
performance products and developing new
performance products to keep up with demand.
We haven’t entered the performance market in
Asia, and we don’t plan to in the next five years
either. We will also take risk factors into
consideration. Risk factors include inflation,
trade barriers, saturation in the market, and
changes in regulation laws.
Short-term Long-term
Our strategy will remain the same
for the next five years since it has
worked thus far:
5
5-Year Strategy
To control the performance
goods market in Europe
and America
through constantly working
to develop and release the
highest quality
medical testing devices on
the market
6. Dear Shareholders,
We have decided that our strategy at Erie is to provide high quality portable genetic testing
devices that offer the most precise genetic results and have the highest chance of preventing
potential health risks to people across the globe. In our fourth year of operations, we pleased
to report that Erie is leading the industry in stock price, sales, and profits as well as having the
largest market share in Europe. Some specific steps that we are taking to continue our
success during the upcoming year include:
R & D
• We are releasing our product, “EBIT” in the European and Americas markets.
• We are retiring our performance product, “Echo,” from all markets.
Production
• We are cutting back on production of our product “End” in Europe and the Americas due
to the time issues with updating the product to meet consumer expectations.
• We are increasing the production of “EBIT” to 1,500 in the Americas and Europe to make
up for the lower production levels of “End.”
Marketing
• We are increasing marketing of “EBIT” to $3 million in sales and promotion in both the
Americas and Europe to increase market penetration.
• We are maintaining marketing levels of “End” and regional marketing in hopes of reaching
the threshold where “End” will be available to all consumers in Europe and the Americas.
We look forward to another exciting year for Erie as a company.
6
Erie Executive Team
A Letter From Erie Executives
7. Threat of New Entrants
Bargaining Power of Suppliers
Bargaining Power of Buyers
Threat of Substitutes
Rivalry among Existing Firms
• Somewhat high in the market in Americas
• Somewhat high in the market in Europe
• In Americas, our rivals include Andrews, Baldwin, and Digby
• In Europe, we are now competing against Andrews, Baker, and Digby
• Products in Performance in Europe, Drogba is a substitute for our product, End
• Drogba is priced at 37.40 euros with a 12.6 accuracy and a 12.6 speed
• End is priced at 40.98 euros with a 12.3 in both accuracy and speed
• In Americas, the threat of substitutes is relatively high due to so many competitors in the market including
Andrews, Baker, and Digby
• In Europe, the threat of substitute is relatively high because Andrews, Baker, and Digby are competing against
us in this area
• The Power of Buyers is relatively high in performance in Americas because Andrews, Baker, Erie, and
Digby are in the market
• The Power of Buyers is very high in performance in Europe because Andrews, Baker, and Digby are
competing against us in the market
• Reduces quality of the input factor or service level delivered
• Limits our profit potential by capturing part of the economic value created
• Very low because Accounts Payable is $576
• Outsourcing for Echo-0, End-0
• In the market in Europe, the threat of entry is low in performance because Chester, and Ferris are
threats of entry and relatively low in budget because
• In the Americas, the threat of new entrants relatively low in performance because Ferris and Chester
are threats of entry
7
Industry Analysis
8. Our outsourcing reached its highest point in
round 2, as we did not have enough plant
capacity to cope with the release of our
product “Easy.” The success of “Easy” coupled
with issuing more stock and debt in the past
two rounds has allowed us to increase plant
capacity each year to meet demand, and we
now will produce our entire line of products
without outsourcing from here out.
8
0
500
1000
1500
2000
2500
1 2 3 4 5 6 7 8
OutsourcingLevel
Round
Industry Outsourcing
Erie
Industry Average
Industry Analysis
9. Erie is leading the way with
the highest overall
automation level.
Compared to the industry
average, it has seen a
steady amount of increase
per round since the start of
round 2. Automation
stopped increasing at round
6 and has remained
constant at an automation
level of 10. Our high
automation level allows us
to produce our units faster,
allowing us to easily meet
our demands and outsell
our competitors.
Erie’s capacity is well
above the industry
average. The greatest
increase in capacity came
between rounds 3 and 4
where capacity increased
by 2000. Capacity stopped
increasing at round 5 and
has remained constant at
5500. We have the highest
capacity level and because
of that we are able to
meet our demand without
having to outsource.
9
2.5
3.5
4.5
5.5
6.5
7.5
8.5
9.5
10.5
Automation
Erie
Industry Average
1500
2000
2500
3000
3500
4000
4500
5000
5500
6000
Capacity
Erie
Industry Average
Industry Analysis
10. • Ferris is the overall leader in the
Americas with 40.4% of the total market
share and 7.2 million units sold
• Erie is the second place firm with 18.8%
of the market share and 3.35 million
units in sales.
• This is the most crowded market in this
industry with 11 products
10
• Ferris is the overall leader in this market
with 32.2% of the total market share with
2.46 million units sold
• We are second place in this market with
30.9% of the market share and 2.37
million units sold.. However, we are the
leaders in the performance sector which,
with its higher profit margins, enables us
to make a substantial profit
• This is the second most entered market
with 8 products
Products, Regions, Markets
Americas
Europe
11. This is a chart that shows the
amount in units of Budget and
Performance products that Erie
has sold in Europe over time. As
shown in the graph, we have
decided to discontinue our
budget products and focus solely
on our performance products. We
have increased in sales every year
for the past three years. We hope
to continue to increase our sales
with our two performance
products and we might add
another performance product as
well.
11
0
500
1000
1500
2000
2500
1 2 3 4 5 6 7
Units
Years
Europe
Budget Units
This is a chart of the amount in
units of Budget products and the
Performance Products that Erie
has sold in the Americas over
time. Over the years we
have retired “Eat,” “Easy,” and
“Echo.” Retiring these products
had led us to a complete exit from
the Budget market. We have now
been focusing on updating current
performance products and
developing new performance
products. We have just released a
new performance product known
as ”EBIT," and the release of this
product has increased the amount
of products sold in the
performance market.
0
1000
2000
3000
4000
1 2 3 4 5 6 7 8 9
Units
Years
Americas
Budget Units
Products, Regions, Markets
12. 2015 2016 2017 2018 2019 2020 2021 2022 2023
Customer
Satisfaction
Easy Performance-
Americas
- - 45 44 43 39 32 - -
Easy Performance-
Europe
- - 34 36 38 27 19 - -
Eat Budget-
Americas
11 9 15 10 7 5 - - -
Eat Budget- Europe - 7 10 9 12 6 - - -
Eat Performance-
Americas
16 14 5 0 - - - - -
Eat Performance-
Europe
- 8 3 0 - - - - -
Echo Performance -
Americas
- - - - - 61 44 39 -
Echo Performance -
Europe
- - - - - 58 25 42 -
Echo Budget -
Europe
- - - - - - - 0 -
End Performance -
Americas
- - - - - - - 69 53
End Performance -
Europe
- - - - - - - 68 51
EBIT Performance -
Americas
- - - - - - - - 72
EBIT Performance -
Europe
- - - - - - - - 72
Market Share
Americas 16.7% 17.1% 21.9% 27.1% 23.2% 26.9% 23.1% 15.7% 18.8%
Europe - 62.6% 72.8% 53.5% 28.2% 24.5% 13.1% 23.5% 30.9%
Stock Price $15.10 $30.36 $55.69 $87.43 $99.17 $114.12 $129.28 $144.03 $161.43
Profit $2,748 $9,028 $18,713 $30,719 $26,293 $36,865 $37,980 $43,400 $47,030
Market Share
We believe that market share is an important metric because it reflects our control of the market. Our vision is to provide accessible
health information to people around the world. In order to achieve this vision we have to have control of the market.
Stock Price
We are measuring the importance of stock price because stock price usually is an indication of the strength and health of a company.
We want our investors to be happy as well as.
Profit
We believe profit is an important measure as well because high gross profit usually indicates that the company is in good financial
health. We want to pay attention to these numbers over time to ensure that we continue to maintain financial stability.
12
Customer Satisfaction
We believe customer satisfaction is an important metric because as a company, we strive to meet and exceed customer’s
expectations. In order to be successful in the performance market, we need to ensure that customers are satisfied with our product.
Guaranteeing satisfaction means updating speed and accuracy, and adjusting prices to fall within the customer’s expectations.
Metrics
16. Tyra is a 3rd year at the University of Georgia and
will graduate in May 2017 with a degree in
Marketing, Management, and a minor in Spanish.
She would like to be an assistant brand manager
in the consumer packaged goods industry.
William is a 4th year majoring in
Management & Real Estate. He is from
Canton, Georgia and wants to build a
career in Real Estate after graduation,
particularly in the rental housing and
apartment side of the market.
Zachary is a 4th year at the
University of Georgia majoring in
Management. He is from Snellville,
Georgia and he hopes to start his
own firm after graduation.
Grace is a 4th year at the University
of Georgia and will graduate in
December 2015 with a degree in
Management. Grace would like to
work as a Project Manager after
she graduates.
William is a 3rd year at the University of
Georgia and will graduate in May 2017
with degrees in Marketing, International
Business and a minor in French. He would
like to work for the marketing department
of a professional soccer club after
graduation.
Zach is from Newnan, Georgia and is
currently a senior at the University of
Georgia majoring in Management. He
is graduating in December of 2015.
Zach wants to ultimately run his own
business one day.
Chief
Executive
Officer
Chief
Financial
Officer
Chief
Marketing
Officer
Chief
Strategy
Officer
Chief
Production
Officer
Chief
Research
Officer
16
Executive Bios
17. • Provide contact information for key personnel from your company.
• Provide e-mail and Web site information, if appropriate.
