1) The document outlines Andrews Co.'s strategy to establish market leadership in the sensor industry through quality, low-cost products. 2) The company's value proposition is to strive for market leadership in the low segment by serving customers and continuously innovating top products. 3) The initial strategy of placing all products in the middle and allowing drift was flawed, resulting in losses. The strategy shifted to focusing on key segments and products, leading to improved profits and market share gains.

1. Evgenii, Roelof & Sjoerd

2. Mission
To establish Andrews Co. as a broad differentiator
of the sensor industry by producing quality,
low-priced products that capture the market
share and maintain a competitive edge.

3. Value proposition
• To strive for the market leadership in Low
segment by serving our customers’ needs
• To constantly innovate our top products
• To launch new products, which offer
more choice for the customer

4. Strategy Overview
Place all products on middle line and
keep them there. Products can drift
backwards.
Two new products:
Awsome for High End segment
Arie to conquer Traditional segment

5. Strategy R&D
• Meet customer criteria
• Shift all current products for
placement within fine cut circle
• Produce new product in performance
& traditional segments
• Repositioning the products towards
the long-term prospective

6. Strategy Marketing
• Competitive pricing strategy
• Achieve 100% awareness &
accessibility
• Accuretly forecast upcoming years’
sales based on units demanded
and potential market share

7. Strategy Production
• Heavy investments in capasity and
automation of the plant
• Avoiding 2-nd shifts
• Aiming 0% inventory

8. Strategy Finance
• To find a perfect levarage level
between long-term debt, current
debt, stock & retained earnings
• Build buffers to cope with
unforeseen declining sales (=8 mln)

9. Strategy HRM & TQM
• Training & recruiting to the
highest standards
• Investing heavily into reducing
cost via TQM (2 rounds)

10. Round 1
• Testing the game
• Positioned everything within cost & reason to
fit the ideal spot
• High promo & sales budgets
 Made profits of 3.3 mln
 Focused on all products (low margin)

11. Round 2
• Proceeded with the Round 1 strategy
• Focused on customer criteria
• Focused on increasing profit margin
 Made profits of 7.8 mln
 Increased stock price by $7.50

12. Round 3
• Created Arie (Traditional) & Awesome
(Performance)
• Invested heavily in capacity,
automation, R&D and TQM
• Outspent all competitors on promo &
sales budgets
 Steep decrease in stock price (-$10)
 Big Al visit ($2.7 mln)

13. Round 4
• Invested in capacity again
• Positioned all products for the ideal spots
for Round 6
• Again focused on products (!)
• High promo & sales budgets investments
 Made loss ($2 mln)
 Stock price decreased by $2
 Lost some advanted on labor negotiations

14. Round 5
• Focused on 3 segments (instead on all)
• Dropped Agape
• New products gained some awareness &
sales
 Made profits of 4.5 mln
 Stock price increased by $8.5
 Became market leader in Low (37%)

15. Round 6
• Positioned Awesome and Arie into
ideal spot and let the other ones flow
• Managed capacity
• Avoided inventories
• Lowered promo & sales budgets
 Good profits ($18.9 mln)
 Very good profit margin
 Increase in stock price by more than
50%

16. Results
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•
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Cumulative profit $ 35,693,912
18,9% Total market share
Competing seriously in 4 segments
Market leader in Low segment
3rd most valuable company at $ 167,000,000
Share value growth almost 50% last year
Initial strategy had its flaws bacause shifting products is very costly
& time-consuming
• Products performed poorly in between segments

17. SWOT team Andrews
Strengths:
 Great team work
 Versiitility
 Good long-term strategy
Weaknesses:
 Busy Schedule
 Difficulties in initial rounds with platform work
 Betting on all ducks fot too long

18. Future growth
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Continue position in Low Segment
Refine position in Trad segment
Add product in High segment
Divest product in Performance segment
Continue investing in Andrews company as we did