Essay About Market Leader And Market Share

Capstone Business Simulation
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VMO StatementCapstone ProjectTablet IncGROUP U14T6BM2017-2019[pic 1]Bimalendu PalUM17267Jagat Jyoti GhoshUM17273XAVIER INSTITUTE OF MANAGEMENT, BHUBANESWARXAVIER UNIVERSITY, BHUBANESWARJULY 2018VMG Framework1.1. Vision“To be the household name for Tablets through innovation and affordability”1.2. MissionTo be the market leader in tablet industry (in terms of units sold) capturing 16% market share in the next 10 years thorough innovative products at affordable prices. 1.3. ObjectivesBased on the mission, the objectives are set as follows:To achieve market share of 16% in the next 10 yearsTo take the advantage of different Tax Structure in different market areas through Transfer Pricing.To sale maximum where margins are higherTo take first mover advantage by outsourcingTo make suitable capex decision to take advantage of the learning curve effect and meet the growing demandTo make decisions regarding addition of features- in house R&D or Licensing based on relative costsMarket Demand ForecastingAssumptions:The growth rate in each of the market area- USA, Europe and Asia are assumed based on the market conditions and penetration of technology infrastructureThe growth rate for each year is based on overall economyThe composition of various technologies- Tech 1, Tech 2, Tech 3 and Tech 4 is proportionate to the network coverage percentage in each market i.e., the network coverage percentage for each technology is taken as surrogate for demand for that particular technology[pic 2]Figure 1: YoY Market Growth Rate in %Demand Forecasting:Based on the growth rate for each year and each market areas, the demand was forecast using the:(Demand at year n+1) = (Demand at year n )* (1+ YoY Growth rate)[pic 3]Figure 2: Demand ForecastingTechnology Launch ScheduleLaunch Strategy:Tech 2 will be launched in the Year 1 Tech 3 will be launched in the Year 5Tech 4 will be launched in the Year 4Market Share ForecastingThe market share to be captured in each market area- USA, Europe and Asia is based on the assumptions as delineated below: [pic 4]Figure 3: Area wise Market ShareThe global market share is as below:[pic 5]Figure 4: Global Market ShareProduction ScheduleThe target market share for each technology gives the production requirements for the same. Based on the target market share for each year and forecasted demand, the production requirement is calculated asProduction= Target Market Share * Demand[pic 6]Figure 5: Production ScheduleCapex Schedule The global supply of tablets determines the capex requirements under the following constraints: Capex Constraints:Production capacity per plant= 550 unitsContract Manufacturing/ Outsourcing Limit= 2000 units (1000 each in Asia and USA)Gestation Period= 1 yearYearNo. of Plants09111214316420522626731836942104811551262Figure 6: Capex ScheduleFrom the above schedule, investments can be made suitably.