1. Situation Analysis

2. Objectives Gain a more complete understanding of the Capstone simulated industryGain a more complete understanding of the Capstone simulated industry Gain a more complete understanding of the tools and techniques used in industry and market analysisGain a more complete understanding of the tools and techniques used in industry and market analysis Become familiar with the Capstone decision support software you will be using.Become familiar with the Capstone decision support software you will be using.

3. Components Perceptual Map Margin Analysis Capacity Analysis Demand Analysis Consumer Report

4. PERCEPTUAL MAP 5 4 2 3 1 Performance

5. 5 4 2 3 1 Performance

6. FUTURE SEGMENT POSITIONS (pp. 29-30)

7. Sweet Spot SegmentPerformanceSize Traditional0.00.0 Low End -.8.8 High End 1.4-1.4 Performance1.4 Size1.0-1.4

8. DEMAND ANALYSIS (pp 30-31)

9. CAPACITY ANALYSIS (p 31-33)

10. What Would it Cost: To Double Capacity?To Double Capacity? –To add one unit of capacity $6+($4*Automation level)$6+($4*Automation level) –To double capacity Current capacity * ($6 +($4*automation))Current capacity * ($6 +($4*automation)) To Maximize AutomationTo Maximize Automation –Current Capacity * ((10-current automation)*$4)

11. MARGIN ANALYSIS (pp 34-36)

12. CONSUMER REPORT (pp. 36-37)

13. Consumer Report Price and ReliabilityPrice and Reliability –Good (top third of expected range) –Fair (middle third of expected range) –Poor (bottom third of expected range) PositioningPositioning –Good – product within.5 units of ideal spot –Fair – product within.6 to1.5 units away –Poor – product beyond 1.5 units AwarenessAwareness –Good – Awareness >.80 –Fair – Awareness between.50 and.80 –Poor –Awareness<.50

14. Consumer Report AccessibilityAccessibility –Good – Accessibility >.80 –Fair – Accessibility between.50 and.80 –Poor –Accessibility <.50 OverallOverall –Assess using relative importance of buying criteria

15. Points to Consider for Strtegy Strive to give customers products that maximize top two criteriaStrive to give customers products that maximize top two criteria Perceptual map is more important as rough cut than as fine cutPerceptual map is more important as rough cut than as fine cut Takes time and maintenance to build a solid product – Invest routinelyTakes time and maintenance to build a solid product – Invest routinely Strive for accuracy in matching production to demandStrive for accuracy in matching production to demand