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Module 1: Strategic Review - Slp

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Submitted By mtgoncall
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Module 1: Strategic Review - SLP
MBA Integrative Project
BUS599
April 16, 2014

I am excited to be chosen the VP of marketing at Clipboard Tablet Co. We sell 3 different types of handheld tablets. The X5 tablet is targeted at the price conscious market whereas X6 is targeted at the performance oriented market. X7 is the newest product with focus on consumers that value both price and performance. Let us review the performance of each product category along with my proposed strategy and recommendations for the forthcoming years.

Let me Start with X5: Indeed, X5 is aimed at price conscious consumers. The company has historically done quite well with this product in the last 5 years in terms of performance against the competition. The sales for this product peaked in 2013. However, the sales started declining after 2013 in the last couple of years due to saturation of the market. Joe kept the pricing of this product same throughout this period which turned out to be negative for the company as the organization needed a price cut in order to attract customers from other competing products. Since the product was competitive in terms of performance, Joe should have declined R&D investment on this product as consumers were more price conscious than performance conscious for this product. ("forio.com," 2015)

Since this product competes in a highly saturated price conscious segment, my recommendation will be to reduce investment in R&D on this product as performance is not required to attract buyers. The target market is “first time buyer” and low product pricing. The company should spent minimal amount on R&D and focused on bringing down the cost of this product. The sales have dwindled to almost half in 2015 from 2014 and margins have declined significantly as well. Hence, unnecessary R&D costs should be eliminated and price discounts should be offered to

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