Marketing
The following are estimates using the NPV calculator:
Expected Commercial Value (NPV)
$11,099,275
Probability of Commercial Success
Probability of Technical Success
Discount Rate
Cashflows
FY13
FY
Development Costs
$2,000,000
$1,000,000
Launch and Marketing Costs
$1,200,000
Forecasted Units Sold
$5,200
Forecasted Revenue (Unit Sales Price x Units Sold )
$2,080,000
Discounted Cashflows (10-Year)
Calculated
NPV Income
$22,200,816
NPV Development Costs
$3,720,341
NPV Launch and Marketing Costs
$2,941,037
FY15
FY16
FY17
FY18
FY19
$400,000
$200,000
$200,000
$200,000
$100,000
$800,000
$300,000
$300,000
$300,000
$150,000
$9,000
$11,000
$10,000
$8,600
$7,400
$3,600,000
$4,400,000
$4,000,000
$3,440,000
$2,960,000
FY20
FY21
FY22
FY23
$100,000
$50,000
$150,000
$100,000
$100,000
$100,000
$6,600
$5,800
$5,200
$4,800
$2,640,000
$2,320,000
$2,080,000
$1,920,000
1b.
The probability commercial success was an assumed input, a constant. It was 0.8. This figure went into the Expected Commercial Value calculation, which was the NPV multiplied by the probability of technical success and the probability of commercial success. The NPV and ECV calculations do not have the power to derive a new probability of commercial success.
The NPV, including the probability of commercial success, is $11.099 million. If the current assumptions about...
The current projections are for sales going out ten years that will deliver an NPV of $22.2 million, versus development costs and marketing costs of around $6.6 million. Even if the project has a probability of commercial success of 40%, it will still have a positive NPV, which indicates that the project should be greenlighted. If we have to cut the price, it will still be profitable, even with a price as low as $155.
We should also calculate the sensitivity to the discount rate, since a 6% discount rate is fairly optimistic. However, with these projections even a 30% discount rate delivers a positive NPV. This is because most of the cash flows are in the first couple of years, which reflects the normal life cycle of a new computer, as they tend to sell best when they are fresh, new technology.
2.
The first element of branding is that within the PC business, it is the manufacturer's branding that matters. This is because the product life cycle is relatively short, so product families within a given brand may only last a handful of years. Plus, the manufacturer will typically have a consistent brand image across its entire product line. An example of how this works is Asus. Asus makes a range of electronic devices, each featuring product brands. So while people who are avid consumers of a specific product will recognize a brand like EeeTop, for the most part people think in terms of category and manufacturer brand (PC World, 2010).
Lenovo in general has a good brand in laptops, because of the value proposition that the brand offers (Laptop Mag, 2014). Now, Lenovo has an established name, we will focus on that, so whatever you call this computer is not that important. At the end of the day, the Lenovo brand and whatever positioning this has are what matters. Co-branding is something you see sometimes with computers. The OS and chip makers in particular, but also sometimes other component makers, engage in co-branding. This used to be easy in older versions of Windows (Kroshan, 2009).
Internationally, the branding strategy should not change. The reason for this is that computers typically maintain the same…
References
Fontelera, J. (2014). Distribution channels and marketing analysis. Houston Chronicle. Retrieved December 5, 2014 from http://smallbusiness.chron.com/distribution-channels-marketing-analysis-60985.html
Kroshan, (2009). Branding your PC with your name and logo in system properties. Techie Inspire. Retrieved December 5, 2014 from http://www.techieinspire.com/branding-your-pc-with-your-name-logo-in-system-properties/
Laptop Mag (2014). Lenovo: Best and worst laptop brands of 2014. Laptop Mag. Retrieved December 5, 2014 from http://blog.laptopmag.com/lenovo-brand-rating-2014
NetMBA. (2010). Pricing strategy. NetMBA. Retrieved December 5, 2014 from http://www.netmba.com/marketing/pricing/
PC World. (2010). The tech brands you can trust. PC World Retrieved December 5, 2014 from http://www.pcworld.com/article/211074/the_tech_brands_you_can_trust.html
This approach to defining a performance-based taxonomy will also allow for a more effective comparison within industries as well. All of these factors taken together will provide enterprise computing buyers with more effective foundations of arguing for more thorough measures of application performance. The net result will be much greater visibility into how cloud computing is actually changing the global economics of the enterprise computing industry. III. Final Report: Introduction The foundational
IT Acquisition Management for a new Video Shop Individual Project Activities Identification of a problem Organization: Component: Showtime Video Store Business Capture Group The problem is that there is no real information technology security measure employed in the video shop. There is very little awareness of the necessary IT security measures amongst the current management heads which is why they need an effective IT security plan and structure to implement to ensure there is no copyright infringement
EMR There are several criteria by which the company can establish acceptability for the eCube system of EMR that is available from Fresenius. The first stakeholder group consists of the patients, who will benefit from the enhanced functionality that comes from the eCube system, in particular the superior health outcomes that come from having accurate medical histories available to physicians and other practitioners while they are working with the patient. Management
" There are several benefits that a global consumer electronic firm could derive from inter-project learning. First, inter-project learning allows firm to enhance project completeness. Prencipe, & Tell (2001) argue that inter-project learning allows firms to execute a project in a best method. In the present competitive market environment, project is the key to the dynamic competitive capabilities. Typically, accumulation of knowledge builds project competencies, which could enhances market performances of a
Guillermo Capital Budgeting Guillermo is faced with a difficult operating environment. Competition has intensified, and this is driving down his margins. At the same time, labor costs are rising. This is putting a squeeze on Guillermo. At present, it does not look like he can compete head to head against his new rival, as that rival is using a technological competitive advantage to outcompete Guillermo. As a result, Guillermo is now
Guillermo Furniture Store is facing a difficult operating environment. The cost of labor -- a key input -- is increasing rapidly. The company is facing intense competition from a foreign competitor that has the ability to undercut Guillermo's low-end lines with better-quality goods. In order to save his business, Guillermo has sought out three different alternatives and is subjecting these alternatives to financial analysis. The results of the financial analysis