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Capsim Memo

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Submitted By zachfang
Words 599
Pages 3
Memo
To: President, J.P. Wilkins
From: Zhenyu Fang
Date: October 15, 2013.
Subject: The electronic sensor industry structure with the initial competing strategy.

Dear President, Sir. J.P. Wilkins
I am writing this because I want to give you a brief introduction of the electronic sensor industry that our company is currently competing and the initial business strategy my team has chosen.
The sensor industry consists two market segments, the low technology and high technology. They share the same buying criteria, which are product’s price, age, reliability and performance/size. However, the customers within the each segment employ different standards as they evaluate products. From the most concerned aspect to the least concerned in the low-tech market, they are product’s price, age, reliability and performance/size. For the same order in high-tech market, they are product’s performance/size, age, price and reliability. It is worth to mention that there is an overlap area between the segments, as the entire market matures over time, the overlap area decreases. This is due to the higher growth rate of the high-tech segment when it compares to the low-tech segment. To wrap this up, we can say that customers seek proven products at a modest price in the low-tech market, while customers seek cutting-edge technology in performance/size and new designs in the high-tech market.
Base on my team’s research and forecast of the current market, we have decided to approach the market with premium products for mainstream customers: we will distinguish our products with excellent design, high awareness and easy accessibility. Our company will develop an R&D competency that keeps designs fresh and exciting as they change in appeal from high-tech to low-tech. Our products will keep pace with the market, offering improved size and performance. We will price above average

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