Comparison Of Time Warps Case Study

Length: 4 pages Subject: Business - Advertising Type: Case Study Paper: #19836170 Related Topics: Comparative, Comparison, Growth Strategy
Excerpt from Case Study :

Business Management

Comparison of Time Warp 2 and Time Warp

Time warp 3 has begun and the plan to make changes to the prices with the aim of optimizing the performance of Clipboard Table Co (CTC). The planned changes that were made at the end of time warp 2 will not be implemented, and the results of time warp three can be compared directly with time warp 2. The third time warp appears to have been more successful, with an accumulative profit of $1,970,217,066 compared to time warp 2 where there was an accumulative profit of $1,752,777,185, so the changes made during time warp 3 increased the profit for CTC by a total of $217,439,881. To compare the changes each year will be compared.

Comparing results for 2012

In time warp 2 the price for the X5 was $270, with R&D cut to zero, the X6 was priced at $440, and R&D was set at 33%, and the X7 was priced at $141, with R&D of 67%. In time warp 3 a different approach was adopted; the price for the X5 was reduced to $220, the price for the X6 was kept at $430, and the price for the X7 was kept at $170. The results for 2012 are shown in table 1. The decision to reduce the price for the X5 appears to have been a good decision the sales increased with the lower price, and while the profit margin decreased from 31% to 25% as seen in table 2, the firm benefits with much higher sales, and saw the profit generated by this product increase by $103,723,745.

The results for the X6 in time warp 3 were disappointing, the sales level increased slightly, with an additional 83,326 units sold, but the overall profit level decreased by $48,400,370 in 2012 in time warp 3 compared to time warp 2. However, the strategy was also to increase market share.

The X7 had very similar results, in both time warps the product resulted in a loss to t CTC. In time warp one the loss had been accompanied by a price reduction, so in time warp 3 the price was kept high to increase the contrition of each item with the aim of reducing the lead period. This strategy did not work, the unit sales reduced by 161,070, and the losses incurred increased...

...

As this was a new product it may be argued that this was a mistake, as it has also mean the firm has a much smaller share of the market at a time when a fast effective lead in a new product could have helped to increase market share and supported long-term sales. However, the year was an overall success, as the profit for 2012 in time warp 3 was $53,844,069 greater than in time warp 2.

Table 1; Units and sales profits warp 2 & 3 for 2012

Time warp 2

Time warp 3

Difference

Units Sold

Profit

Units Sold

Profit

Units Sold

Profit

X5

2,064,017

172,682,008

5,020,082

276,405,753

2,956,065

103,723,745

X6

1,205,673

153,516,090

1,288,999

105,115,720

83,326

-48,400,370

X7

326,656

-25,487,622

165,586

-26,966,847

-161,070

-1,479,225

Total

3,596,346

300,710,557

6,474,667

399,554,626

2,878,321

53,844,069

Table 2; Market saturation and net profit margin time warp 2 & 3 for 2012

Time warp 2

Time warp 3

Market saturation

Profit Margin

Market saturation

Profit Margin

X5

27%

31%

27%

25%

X6

16%

29%

16%

27%

X7

2%

-55%

2%

-86%

Comparing results for 2013

The results for time warp 3 for 2013 were not as good as 2012. Time warp 3 saw the decision to discontinue the X5. This may have been a mistake, as in time warp 2 it was still profitable, and in time warp 3 this profit was lost. It was hoped that the buyers would shift to…

Sources Used in Documents:

39%

Conclusion

Time warp 3 was more successful, the strategy of keeping prices low to sell more products and make a higher overall profit appears to work. The exception to the better performance of time warp 3 was 2013, when time warp 2 had a better performance. It is possible that the X5 was discontinued to early, and the lowering of the X7 price at an earlier point may also provide some benefits, however, the overall performance wit the firm gaining more market share on a lower profit per unit, but a higher overall profit has been a good strategy.


Cite this Document:

"Comparison Of Time Warps" (2014, December 31) Retrieved January 22, 2022, from
https://www.paperdue.com/essay/comparison-of-time-warps-2153885

"Comparison Of Time Warps" 31 December 2014. Web.22 January. 2022. <
https://www.paperdue.com/essay/comparison-of-time-warps-2153885>

"Comparison Of Time Warps", 31 December 2014, Accessed.22 January. 2022,
https://www.paperdue.com/essay/comparison-of-time-warps-2153885

Related Documents
Clipboard Tablet Company: Comparing the Time Warps
Words: 1760 Length: 5 Pages Topic: Economics Paper #: 80838166

Business Studies Clipboard Tablet Company - Comparing the Time Warps Finally 2016 has arrived and after moving through the period 2012-2015 twice due to Groundhog Day, the results of the different strategies can be compared. Time warp In time warp 1, the first consideration was the X5. As the price was noted as being higher than competing products the price was lowered to $220. As the product was already established in the first time

Comparing Results From Two Time Warps at the CTC
Words: 1032 Length: 4 Pages Topic: Business - Advertising Paper #: 31818050

Business SLP 5, Last Time Warp for the Clipboard Tablet Company It is January 1st 2012 again, and the time warp has re-started. This time there is a difference, the results for the last time warp (SLP 4) have been reviewed and new strategies have been developed based on that last time warp based on the observations and the CVP calculations. The aim of this paper is to implement the predetermined strategies

CTC Time Warp
Words: 1286 Length: 4 Pages Topic: Economics Paper #: 61499723

Business Management CTC Time Warp Time warp 2 provided for increased knowledge regarding the market and the way in which CVP could be used to improve decision regarding prices. Time has reset and the CVP along with the results may be used to develop a more effective strategy. Adjustments to the strategy will be made learning from time warp 2. Underlying Theory The assessment from the past time warp indicated that the X5 has

Strategy for the Time Warp 3 Was
Words: 1083 Length: 4 Pages Topic: Business - Advertising Paper #: 19704047

strategy for the Time Warp 3 was formulated based on careful analysis of the results of Time Warp 2, which provided insight into buyer behavior at different price points for the three tablets. The strategy was set to optimize the profits for all three products at pre-set levels of R&D allocation. There may be better R&D levels, but for Time Warp 3 these were not explored. The strategy for

2012: 1/2/2012, Beginning Time Warp 3. You
Words: 903 Length: 3 Pages Topic: Business - Advertising Paper #: 32150119

2012: 1/2/2012, beginning Time Warp 3. You completed analysis revised strategy years a breather. Just time, enter predetermined decisions year collect data future analysis. The time wrap experience comes to an end and makes way to resume the normal activities. Still, before doing so, it is necessary to review the decisions made in each of the two scenarios, and draw the adjacent lessons. The table below was created to offer

Diagnosis, SLP: Time Warp the Analysis Below
Words: 1430 Length: 4 Pages Topic: Business - Advertising Paper #: 86776687

Diagnosis, SLP: Time Warp The analysis below is of the recorded results as achieved in Time Warp 2 decisions. We will derive a separate strategy after evaluating the results which will give an explanation of what the fresh strategy ought to be. Different theories will be evaluated so as to arrive at the eventual strategy as concerns the implementation and operationalization of the idea just arrived at. Here is a scenario: