Premium Essay

Navigation System Price Analysis

In: Business and Management

Submitted By rachelgarder38
Words 627
Pages 3
Navigation System Price Analysis
Strayer University
BUS315 Cost and Price Analysis
Professor Stephen Bartorillo
May 4, 2015

Price Analysis The primary costs being considered by Bickham Services Unlimited for the pricing strategy of the HSNS-P1 is the cost of manufacturing. In our case the cost of manufacturing is very high because the raw materials required, such as the unmanned, manned systems, aircrafts, space systems and other technological materials required, are too expensive. Also we need highly skilled and technical professionals for the manufacturing process to be directly involved in monitoring and manufacturing the system. The administrative cost are the most important expense because it aids the production of the drone navigation system as it covers the extra costs that come up. Consideration of our products cost will be essential for effective pricing. Inventory evaluation has to be made in order to determine the required inventory needed for manufacturing the HSNS-P1 unit. Unit costing will aid in the determination of appropriate cost of the final product (April 30, 2015, blog.cordiars.website). Transportation costs of the required raw materials will be included in the pricing. This is because we will need to import some highly sensitive materials for the manufacturing process. The price analysis was conducted based on: * Competitive proposals where price is not part of the proposal * Small purchase with documented published price lists from selected vendors and the best price was selected. * Small purchase with documented phone and fax quotations from various offers and the best price was selected. * Sealed bid with 2 or more responsible bidders and the lowest bid with best services were selected. Price Cost Analysis The cost of the HSNS-P1 is reasonable in a competitive marketplace against VectorCal. We have…...

Similar Documents

Free Essay

Car Comparation Via Hoq

...Quality Summary 3 4 System Analysis 4 4.1 Voice of Costumer (Costumer requirements). Assumptions 4 4.3 Engineering hypothesis of the analysis. 5 4.4 AUDI S4 Sedan (2012) 5 4.4.1 Data Inputs (Importance) 6 4.4.2 Result Analysis. 7 4.5 BMW M3 Sedan (2012) 10 4.5.1 Data Inputs (Importance) 11 4.4.2 Result Analysis. 12 4.6 Mercedes Benz CLS63 AMG Sedan 15 4.6.1 Data Inputs (Importance) 16 4.6.2 Result Analysis. 17 5 Conclusion 19 6 References 20 Table of Figures Figure 1 - House of Quality Process Summary 5 Figure 2 - Audi S4 2012 6 Figure 3 - AUDI S4 HOQ 7 Figure 4 - BMW M3 2012 11 Figure 5 - BMW M3 HOQ 12 Figure 6 - Mercedes Benz CLS63 AMG 16 Figure 7 - Mercedes Benz CLS63 AMG 2012 HOQ 16 1 Introduction The objective of this project is to understand what user trade-offs were selected and prioritized when each of the three systems were being developed. The Systems to be analyzed will be: • 2012 Audi S4 Sedan • 2012 BMW M3 Sedan • 2012 CLS63 AMG Sedan In order to understand this relationship, a reverse engineering concept will be done using the QFD-HOQ model on all three of the above systems. Traditional Enginnering concepts will be utilized during the system analysis making design considerations (i.e. speed vs. weight vs. acceleration) all of these systems. It will be according to reverse engineering and the importance of each user requirement associated with the system by paying......

Words: 4067 - Pages: 17

Free Essay

Tomtom Strategic Managment

...sells navigation systems and services to car manufacturers and OEMs worldwide. Handset manufacturers and network operations are services with mobile navigation solution , map content and services by the business units TOMTOM and TELE ATLAS.TOMTOM financial performance: looking at profitability and financial strength. From 2005 to 2007, the company had a consistent growth in revenue sales with a corresponding increase in net income. This changed from 2008 with a decline in sales revenue of 3.7% and a net income decrease of 136%. This can be accounted by the downturn of the economy but also indicates that TOMTOM did not change its strategy quick enough to absorb the changes in the economy. Sales revenue further decreased in 2009. Also look at competitive strength, TOMTOM is suffering from continuous pressure from competition and decrease in retail prices of GPS units. GARMIN is still the leader with market share of 45% while TOMTOM has a market share of 24%. Based on the above, TOMTOM has a competitive strategy but not a total winning strategy. They need to look at the industry and be more pro-active at market changes and other threats which they identified. TRENDS: Demand for portable navigation devices have declined as traffic and mapping functions are becoming an almost standard feature in cars and mobiles. It will thus look like these device’s market has reached its saturation point. It would seem that more focused is placed on fleet tracking in the satellite navigation......

Words: 1748 - Pages: 7

Premium Essay

Pricing Navigation Systems

...Assignment 2: Price Analysis for the Navigation System Robert Gonzalez Professor Stephen Bartorillo BUS 315: Cost and Price Analysis July 26, 2015 Analyze your company’s cost classification for pricing of the navigation system. Defend your cost classification to the US government. Considering that our only competitor in the field of navigation systems is VectorCal, it was important for us to carefully determine pricing that was, not only competitive enough to beat the competition, but affordable enough to increase customer demand. Our Analysts have worked diligently in reviewing the cost to manufacture our product from all different angles and scenarios in order to create a price that meets the terms of the contract and allow us to continue to earn reasonable profits for the business. At Autobots, we employ 23 highly-skilled technicians that utilize the raw materials that go into manufacturing our system. Those direct costs can be traced back to our finished product, the M-2300, because we can account for the raw materials used and what was spent on hourly wages for our technicians. The business also employs a management team that is knowledgeable in the field of navigation systems and in overseeing large projects and an operation such as ours. This team we keep on salary and cannot trace their contributions to the project back to the finished product, so we have divided their salaries as indirect costs into several different divisions within the company. We rent our......

Words: 1056 - Pages: 5

Premium Essay

Navitech

...Navitech is a privately owned company that specializes in the design of flight control systems. Our company develops and manufactures cutting-edge avionics for the UAV industry and manned aviation sector. Avionics are the electronic systems used on aircraft, artificial satellites, and spacecraft. Our small, light-weight and accurate navigation systems are ideal for unmanned air vehicles or remotely piloted air systems. Navitech’s mission is to combine aggressive marketing with high quality state of the art products and services at competitive prices and to become the leading developer of flight control avionics. Our staff consists of a multinational team of experts with backgrounds as diverse as aerospace, microelectronics, aeronautical engineering and military defense technology who are also investors in the company as well. Navitech’s navigation systems are made with only the best sensors and components, and will prove to be more efficient and outlast our competitor VectorCal’s product. Here at Navitech we respect the fact that VectorCal has been the go-to company for the United States Government for its navigation systems and when given the opportunity, Navitech will prove that it is more than capable of producing products for the government. We guarantee a better product for a more reasonable price than what our competitor is offering. Being the sole manufacturer of navigation systems for so many year has caused VectorCal to become complacent and underestimate Navitech......

Words: 561 - Pages: 3

Free Essay

Mos Ppt

...INTRODUCTION 4 OBJECTIVE 5 METHODOLOGY 5 ANALYSIS AND RESULTS 6 RECOMMENDATIONS 8 LIMITATIONS 9 APPENDIX 10 ABSTRACT Our study identifies the most important and influencing factors for consumer preferences to eat at a pizza outlet like pizza hut, dominoes and pizza corner. With the help of factor analysis and regression we are trying to find out the willingness of a customer to pay at a particular outlet and hence what should be the pricing strategy of the pizza chain. The main elements in our study which affect the spending capacity and willingness are combo offers, services and variety offered by the outlets. Hence using this analysis we have also tried to find the premium which these outlets can charge over to its customers for the same products. INTRODUCTION As the society and changing eating habits is influencing a lot of people to savor variety of cuisines and thus influencing their willingness to pay at various pizza outlets, most of the chains in this line of business are investing more at their strategy to attract more of the customers. Since the purchasing power of the consumers is the biggest determinant in the consumer decision making, the pricing strategy should be apt and also in sync with the attributes they offer to consumers apart from the food. Due to growing consumerism and persisting value offerings, the pizza outlets need to identify the elements upon which they can frame their prices and hence garner a sizeable lot of customers.......

Words: 3105 - Pages: 13

Premium Essay

Sony Pda

...INDEX PAGE: Exclusive Summary: 3 SWOT analysis: 4 Strengths 4 Weaknesses 4 Threats 4 Opportunities 4 Organization Objectives 5 Roles of the web site 6 Value-adding potential of the web site 6 Target users 6 Decomposition 8 Demand Domain 9 Feasibility Study 11 Storyboard: Option 1 13 Storyboard-Option 2 15 Dairy of activities undertaken 17 XHTML: 17 Exclusive Summary: This report is the Web-development plan about Sony Clie PDA in Australia market. In fact, Sony Co. Ltd is famous for the digital products in the world. Sony is the market leading of technology product in the world. With regarding to the current situation and competition of doing business, we should take advantage of our online technology to further develop our company position. At the beginning of 2000, Sony attempted to expand their PDA market in the Australia market. PDA, short for personal digital assistant is a handheld device that combines computing, telephone/fax, and networking features. A typical PDA can function as a cellular phone, fax sender, and personal organizer. It is an existing product, which is in the growth stage of the product life cycle. Sony Japan assigned the subsidiary called Sony Australia Co., Ltd- PDA department to expand PDA sales in Australia with combining the electronic commerce technology into our traditional marketing strategies. SWOT analysis: Strengths • The backing of one of the worlds' most prominent companies; • Sony Clie is one of the...

Words: 1872 - Pages: 8

Free Essay

Tomtom

...2.0 Situation Analysis 2.1 General Environmental Analysis (i) The economic forces The sales that generated by TomTom are impacted by the economic fluctuations of the market in which it competes. If the economic is downturn, it is limited the capacity for business and consumers to spend, as a result, the level of revenues for TomTom are going down. For example, the economic recession in year 2009 was brings a huge impact to TomTom. The economic recession in year 2009 is considered the “dark side” for TomTom, it brings a huge impact to them and enables TomTom almost go into troubles and crisis situation. Until the huge recession in 2009 has passed away, the economics of TomTom still unable to fully recover and the revenue is still affected. The economic recession has brought more impact on TomTom in term of their sales and revenue growth. It leads to a significantly dropping of the sales and revenue growth of TomTom, for example “on 22nd July 2009, TomTom reported a fall of 61% in its net income at the end of 2nd quarter 2009”. TomTom has a significantly dropping of their sales and revenue growth because there have a price war exist during economic recession, especially in mature industries of TomTom such as in US and European, it was affected the profit earned by TomTom. Besides that, another reason is almost customers were reducing their expenditures and avoid buying the unnecessary things such as devices since it is still seen as luxury products during economic......

Words: 1367 - Pages: 6

Premium Essay

Cost and Price Analysis

...The main costs associated with the production of VectorCal’s drone navigation system are the labor cost and material cost. VectorCal’s drone navigation system has two types of labor cost, direct labor and indirect labor. Direct labor cost is wages that are incurred in order to produce specific goods or provide specific services to customers. It also includes the payroll taxes associated with those wages, plus the cost of company paid medical insurance, life insurance, workers' compensation insurance, any company matched pension contributions, and other company benefits (Adams, 2014). Indirect labor is the cost of any labor that supports the production process, but which is not directly involved in the active conversion of materials into finished products. Indirect labor cost would include production supervisor, purchasing staff, materials handling staff and materials management staff. The cost of both types of indirect labor can be fully loaded with the costs of benefits and payroll taxes for financial analysis or cost accounting purposes, since these additional costs are closely associated with the indirect labor positions (Adams, 2014). Direct material cost is the cost of important materials that are used in the manufacture of a product or used in providing a service. Direct material costs are definitely identifiable to the contract. The concept of estimating direct materials costs is very straightforward. It consists of determining what is needed, how much is needed,......

Words: 988 - Pages: 4

Premium Essay

Tomtom Case Analysis

...largest producers of navigation systems in the world, comprised of both standalone devices and applications. The company leads the navigation systems market in Europe and is second in the US, but as these markets become saturated TOM2’s sales growth rate and profits decrease. Contributing to the decline, Google and Nokia offer free navigation features on GPS-enabled smartphones. Despite competition, TOM2 will increase in profitability due to innovation and their ability to take advantage of external opportunities. SWOT ANALYSIS Internal Strengths TOM2 has brand recognition. According to the company, three out of four people are aware of TomTom products. As TOM2 diversifies into new markets there lies a strength in brand loyalty, as consumers will prefer the products of this established company compared to lesser known competitors, allowing TOM2 to charge premium prices for their brand name. TOM2’s belief in radical innovation is one of their greatest strengths. TOM2 continually develops better routing and traffic information. TOM2 has the world’s largest historical data base of IQ routes and possesses unique real time traffic information updates which empowers drivers to reach their destination better informed. As a result, TOM2 has increased the utility customers gain from using their value-added services. TOM2 can raise prices to reflect this utility or hold prices to induce sales thereby expanding sales volume. Internal Weaknesses Portable navigation devices (PNDs)......

Words: 692 - Pages: 3

Premium Essay

Strategic Management, 2nd Ed Test Bank Chapter 1

...  | iPad | B.  | iPhone | C.  | iPod | D.  | iTunes | |   2. | _____ is best described as an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage.    A.  | Supply chain management | B.  | Integrated technology management | C.  | Strategic management | D.  | Inventory management | |   3. | _____ is best described as a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors.    A.  | Behavior modification | B.  | Strategy | C.  | Credo | D.  | Competency management | |   4. | Which of the following stages of the strategic management process involves an evaluation of a firm's external and internal environments?    A.  | Strategy analysis | B.  | Strategy implementation | C.  | Strategy formulation | D.  | Strategy control | |   5. | In _____, a firm frames a guiding policy to address the competitive challenge.    A.  | strategy control | B.  | strategy implementation | C.  | strategy formulation | D.  | strategy analysis | |   6. | Through _____, a firm puts its guiding policy into practice by employing a set of coherent actions.    A.  | strategy control | B.  | strategy implementation | C.  | strategy formulation | D.  | strategy analysis | |   7. | A firm that achieves superior performance relative to other firms in the same industry or the industry average has a(n)......

Words: 23148 - Pages: 93

Free Essay

Information System

...information spaces – Conceptualize information as a set of physical objects – Conceptualize information space as the physical space in which these objects reside – Information architecture is the architecture of this information space Lin, J. 2008. Introduction: What is Information Architecture? Available online at http://www.umiacs.umd.edu/~jimmylin/INFM700-2008-Spring/Session1.ppt IA Examples http://www.mta.info/nyct/maps/submap.htm IA Examples IA Examples http://en.wikipedia.org/wiki/File:SteacieLibrary.jpg IA Examples www.nist.gov IA for the WWW • Information Architecture 1. The structural design of shared information environments. 2. The combination of organization, labeling, search, and navigation systems within web sites and intranets. 3. The art and science of shaping information products and experiences to support usability and findability. 4. An emerging discipline and community of practice focused on bringing principles of design and architecture to the digital landscape. Information • Information – Web sites – Documents – Software applications – Images – Metadata • Terms used to describe and represent objects such as documents, people, processes and organizations IA Concepts Structuring, organizing, and labeling • Structuring – Determining the appropriate level of granularity for the information – Deciding how to relate pieces of information to each other • Organizing – Grouping those......

Words: 2739 - Pages: 11

Premium Essay

Statistics

...measuring, controlling, and communicating uncertainty; and it thereby provides the navigation essential for controlling the course of scientific and societal advances (Davidian, M. and Louis, T. A., 10.1126/science.1218685).” Business Decisions and Statistics Using statistics for business decision-making is not new. In fact, it’s centuries old. Any time a farmer kept a record of what crops sold at a given price that he then used to adjust his planting the next year, used statistics for a business decision. Today one need only search the database available on the USDA website to access statistics from over 70 years ago. (USDA, 2015) No one can see the future or what it holds. That being said, statistics; if used correctly and with good valid data, it can help eliminate as many guesses as possible to guide the future of a given business. Let’s say, for example, you are a business owner making and selling a widget. The goal is to sell as many widgets as possible at a price that covers the cost of materials, labor and overhead that are needed to make the widgets. Statistics will ensure that you have enough information to make decisions that will have a positive impact your business and minimize any negative forces that are perhaps out of your control, i.e. gas prices or severe weather. Perhaps you want to own a bakery. Setting up a system and process of statistical analysis from the beginning will assist in knowing how best to run the business. This......

Words: 504 - Pages: 3

Premium Essay

Autonation: Now Offering Navigational Service Plans and Agreements

...AutoNation: Now Offering Navigational Service Plans and Agreements Cornelius L Davis (D01407581) Keller Graduate School of Business University Marketing Management MM522 Professor Lynn Szostek 09/11/2011 AutoNation: Now Offering Navigational Service Plans and Agreements Executive Summary AutoNation hired our firm, Cornel’s Strategic Marketing Incorporation to develop a marketing plan to sell global positioning systems (GPS) and offer an additional service program to service GPS systems. Cornel’s Strategic Marketing Incorporation has been in business since 1956 and has provided marketing plans to all types of businesses with great success. The following market plan sets the foundation to a successful project deployment. AutoNation is the top automotive retail industry with a strong brand name. Applying a new service for GPS systems will enhance the operation and provide an extra service to its customers. The additional service is in-line with AutoNations mission objectives. The GPS system is a hot commodity that gives customers an additional feature and benefit. Establishing a partnership with the top GPS manufacturers (TomTom, Garmin, and Magellan) increases the success rate of the marketing plan. Then the additional servicing programs of extended warranty, replacement program, upgrade program, installation, and set-up gives an added incentive with competitive pricing. Strategic development of the plan identified strengths and weaknesses. The strengths are......

Words: 6006 - Pages: 25

Free Essay

Garmin

...Garmin GPS Navigation Systems with New Integrated Technology Marketing Management MKTG522 Garmin GPS Navigation Systems with New Integrated Technology 1. Executive Summary Garmin specializes in satellite navigation systems, which are called Global Positioning Systems or GPS. Its core competencies have enabled it to become the leading competitor in the Portable Navigation Device (PND) market. Garmin is the leading portable navigation company in the industry with more than 50 percent of the market share in 2008. Through analysis and market research it has been determined that the industry has a high threat of competition especially due to the growing use of cellular device GPS products. When looking at Garmin’s life cycle, it has been determined that Garmin is currently in a declining state. Garmin’s stock, sales, and revenue have fallen since 2008. The most important environmental change that Garmin needs to focus on is technology change. Garmin’s products and its core business come from its research and development efforts. Garmin needs to recognize and adapt to the technology changes and consumer needs. Investing more money into research and development for PND devices will provide Garmin with greater potential to make a lasting impact on the industry. Garmin has the resource to compete with cellular handset devices and other PND companies. Garmin will release its latest automotive GPS device this January 2014. The new model will be......

Words: 4597 - Pages: 19

Premium Essay

Case Analysis 3 - Personal Navigation Devices (Pnds)

...Brian Anderson Case Analysis 3 - Personal Navigation Devices (PNDs) TM583 10/2/2010 1. Why have Personal Navigation Devices become popular? What technologies are required to facilitate the success of PNDs? PND’s have become very popular in both handheld and vehicle models. These personal devices allow the users to not only determine where they need to go but also where they are and most have a memory which allows the user to save locations to their favorites. If they are connected to the internet they can be updated regularly with new locations to search for within their memory like restaurant’s, gas stations, and various other stores and community locations. PND’s work using GPS navigation satellites to gain their respective GSP coordinates. With these coordinates the internal system can place them on the map that have been installed within the PND and shows the user where they are in relation to other locations and can even give the best path from point A to point B. 2. Who are some of the leaders in PNDs? What are the likely factors that will contribute to winning in this marketplace? Among the top PND’s are Garmin, Tom Tom, Magellan, and Motorola. The PND that I have had personal experience with would be the Garmin. Garmin produces rugged hand held models that are perfect for camping, hunting and hiking. They normally come equipped with forest roads and other off the beaten track maps that the vehicle models do not contain. To win in this market the PND...

Words: 545 - Pages: 3