Report on Impact of Competition

        There are four markets segments in which Andrews Corporation is competing which are Thrift, Core, Nano, and Elite. All the segments are different in characteristics like Price, MTBF, Age and performance. All the mentioned segment of the market caters different need and preferences of the customers. Andrews Corporation is competing in all four segments of the market with its three competitors named as Baldwin, Chester and Digby.

            It is believed by the Andrews Corporation that rivalry or competition between sensor manufacturers is quite good and beneficial for sensor business because each and every competition has the capability of teaching major organizational lessons. With the competition, the awareness of the market would be achieved by the organization. At an instance, competitors are not present and it doesn’t cause the company to improve the quality.

As the competition rises, the organization optimizes the caliber of products while keeping the price at a minimum. For instance, purchasing good quality products has become easier with the rising competition because it allows different manufacturers to stick to the same price while improving the durability of product. Therefore, the competition is quite good for a business. Furthermore, it urges organizations to be unique from other competitors and offer services which are unique to only them. The aspects which are different makes them stand out from all the other competitors.

            Andrews Corporation actually made sure to go through every possible and available dataset like production information, conditional reports, and market segment analysis before making managerial decision such as financial decisions, HR, Production, marketing, and even decisions which were related to research and development.

The position of Baker was always assured by Baldwin to be quite close to the best position. After observing and analyzing the movements of Baker on the perceptual map, the successful positioning of Able was made possible by Andrews. It was a new product of Andrews in the normal or traditional segment on the perceptual map. Due to it, Andrews was capable of achieving success in the normal segment of marketing from the 2020 year to the date by the end 2024 year.

For overcoming this particular situation, the budget sales of Baldwin were examined closely by Andrews along with their recent rewards or achievements. It can be said that it was always made sure by Baldwin to investment the best or maximum on their promotion and sales and it is the main reason just why they were able to achieve success. On the basis of such studies and findings, it was decided by Andrews to expand its budgets regarding promotion and sales, and was capable of efficiently increasing the accessibility and awareness of the product during the late five years. Meanwhile, the pricing strategy of every competitor also had to be understood by Andrews just to make sure that the prices of Andrews are competitive and tough to be beaten. The aspect of competitive pricing is more than just a little important because it direct impacts sales and the generation of revenues.

Through the first four years, Andrews’s Production department seemed to experience some certain issues in the case of management of inventory. The role of this department was to turning every input into a finished output using a series of processes regarding production. It is a functional area of the whole organization.

Market Analysis

For the purpose of analysis, Market can be divided into following segments of the customers, Traditional market segment, Low end market segment, High end market segments, Performance Segment and Size market segment.

In each of the segment, competitive position is different of each of the company so it is evaluated below individually.

Traditional Market Segment

In traditional market, Total units demand is 7003 units and major market share is with the Baldwin as it can be seen in Appendix A, despite Baldwin having a huge market share in traditional segment, it is performing what is expected or potential of the company. In comparison to Andrew whose actual market share is higher than its potential market share. In this segment, Baldwin is a market leader and having a clear competitive edge from all of its competitors by huge margin

Low End Market Segment

In this segment, all of the companies are having cut throat competition and no one is having clear competitive edge over other as it can be seen in Appendix B, market share graph. Despite the close competition, Andrew is doing very well in it by attaining the maximum market share as compared to its competitors and Able product market share is 9%

High End Market Segment

High end market is also facing huge competition with no clear competitor is getting an advantage over other. High end market is having less growth rate as compare to Performance and Size segment. But this segment is very attractive for the companies to operate as it is most profitable and elite customers of the segment.

Performance Market Segment Analysis

The growth rate in high end market segment is 19.8% (see Appendix C) which is the most as compare to other segment, which always give new space to companies operating in the segment to strive for the new market share. The ideal position is at 43%, Reliability is 29%, age is 9% and price is 19%.

Size Market Segment Analysis

In size market analysis, major market share is with the Digby and it is clear cut market leader in this segment with regard to market share analysis, see Appendix D. Total Industry Unit Demand in this segment is 2590 which is also same as anticipated by the industry. This segment has 10.5% of share in this industry. Growth rate in this segment is also very good at 18.3% that makes this segment very attractive for the company to attain.

Competitive Analysis

Broad Cost Leader – Chester

In the third round, the abandonment of performance was chosen by Chester along with size categories which allowed them to concentrate especially on the segments which were low-end, traditional, and high-end while falling on the same line of fine-cut. The pricing strategy of Chester was surely consistent and evaded an important fluctuation in price which no doubt was omnipresent on teams which were low-performing. An effective operation was ran by Chester while continuously scheduling 2^nd shifts while directing dollars away from the plant purchases of capital-intensive and towards automation and HR.

Chester by attacking such varying costs, margins was strengthened by him in almost all products, notably traditional and low-end ones. By the game ending, the lowest margin was handled by Chester.

Baldwin – Low Performer

It can be said that Baldwin suffered from unsound decisions and disjointed strategy along with an unnatural game feel. Although decisions were made by successful teams which were built on others, the establishment of a strategic rhythm was failed by Baldwin.

Less than the net cost of the production was sold by Baldwin and it resulted in higher costs of inventory and relatively less expansion in terms of revenue. Baldwin was plagued by poor forecasting in a way that is not easy to recognize or understand since on average, only all units’ 73 percent were sold by it.  It was notably the worst rate in the whole game. All these reasons contributed to such a poor performance.

Aggressive Growth– Digby

Digby conquered this imitation, taking market amount on a large of scale, segment, preserving margins significantly, also for taking leading shares of market in utmost every marketplace. Big risk has taken by Digby, but organized perfect locating as well as products that are latest decisions development. Close attention paid by Digby to every sector’s ideal age of invention, placing, superiority, also worth, preferably serving every game ‘figuring out’ from a first round.

Digby documented the age, spot model, also the superiority as buying choices in significantly as compared to amount, so it energy little missed on reviewing products at low end. directly All revisions on the cut line finally for all yields ,also Digby  continued a size / price fissure (while straddling still the  line cut) when two products are carried by it in the  similar marketplace (such as in the high end segment Dixie /Doom  also in the traditional segment Day/Daze).this  permits Digby to ‘soak up’ clients  the deep wells of clients prospective  in a given marketplace – the primary (and possibly only)aim a  latest product should be  identified to a latest manufacturing. On marketing just enough spent by Digby.

Appendices

Appendix A

Appendix B

Appendix C

Appendix D