Strategy for the Time Warp 3 Was Essay

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 this Time Warp was as follows:

Discontinued

The results were as follows. In the first year, the X5 sold 1.859 million units and delivered a total profit of 151.182 million. The X6 sold 1.237 million units and delivered a total profit of 217.837 million. The X7 sold 0.740 million units and delivered a loss of around $4.8 million. The total income was 364.210 million for the year. The market saturation of the X5 is 54%, for the X6 it is 37% and for the X7 it is just 3%. There is significant room for growth in the X7 at this point, while the other two products are driving profitability. The total profitability is 655,785,354.

The second year saw the following results. The cumulative score at this point is 1,086,107,574. The X5 sold 1.292 million units and delivered a profit of 83.101 million. The X6 sold 1.514 million units and had a profit of 277.041 million dollars. The X7 sold 2.055 million units, delivering its first profit, which was 70.179 million dollars. The market saturation of the X5 was 80%, indicating that there is one viable year left of this product, as predicted.The market saturation of the X6 is 57%, indicating that there are two viable years left of this product, and the X7 saturation is just 8%. This indicates that, as predicted, it is growth in the X7 that will be the major contributor to company profitability going forward.

The third year saw the following results. The cumulative score at this point is 1,602,649,463. The X5 sold 0.703 million units and delivered a profit of 6.7 million. The X6 sold 1.242 million units and delivered a profit of 229 million. The X7 sold 5.929 million units and delivered a profit of 280 million. The total combined income was 516 million dollars. The market saturation of the X5 is 95%, indicating that it is time to discontinue this product. The market saturation of the X6 is 80% and the market saturation of the X7 is 20%.

The fourth year saw the following results. The cumulative score was 2,022,287,680. This is 96.2% of the maximum score. The X5 did not sell any units. The X6 sold 0.439 units and delivered a profit of 58 million. The X7 sold 7.361 million units and delivered a profit of 361 million dollars. The total profit was 419 million for the year. The market saturation of the X5 was 100%, the X6 was 96% and the X7 was 57%. The saturation figures are important because they indicate that the objective of profit maximization for the X6 was successful, even though it came at the expense.....