AC Camera: I. Industry Analysis

Company C
ASSESMENT OF YEAR 6TH COMPANY’S PERFORMANCE
I. Industry Analysis
1. AC Camera
a. Price and Demand
 The average wholesale price in the past year 6 has been divided into two large areas with similarities.
Both North American and European-African markets have an average wholesale price of $ 255 / AC
product while in the remaining Latin America markets wholesale prices is only approximately $ 251 / AC
product and in Asia-Pacific markets, the price is lowest $ 245 / AC product.
 However, there is a marked difference in the demand for AC products in 4 markets.

Leading demand is the North American market with 1,500,000 products, nearly twice
the most unattractive market is Latin America with only 725,000 products. The two
markets followed closely followed by Europe - Africa and Asia - Pacific with demand of
1,280,000 and 1,035,000 units respectively
b. Product Quality
 Last year there was a sharp increase in product prices, however the number of
product features and P / Q index did not increase accordingly.
 For product design, investors have clear distinctions in the features such as
image sensor, photos modes and extra performance features that have a big
difference in investment between investment companies. The most and the least,
the remaining features are not much different.
c. Manufacturing Cost
 There is a difference between the cost of producing AC products because the quality and customer
segments that each company is targeting are different, leading to changes in research and training
investment costs depending on the policy. of each company.
 It is possible to see the slight difference in the income level of workers among companies (the difference of
more than $ 1,000 between the highest and lowest paying company) so that the productivity is not
significantly different.
 The cost of assembly production between companies is different, possibly due to the difference of the
application of the robot and the use of labor.
 The difference between the number of factories and the work space is similar.
2. UAV Drone
a. Price and Demand
 The average whole sale price in 4 regions have no many differences, the highest price is
$ 1,270,000 / UAV Drone in North America and the lowest is $ 1,208,000 / UAV Drone in
Latin America
 However, the demand in 4 regions have significant gap. The North American market is
still leading in the number of UAVs consumed (295,000 products), nearly triple the least
attractive market, Latin America only sold 100,000 products.
b. Product Quality
 Last year both product price had big increase but P/Q index and number of additional
features in the product increased slightly.
 The features with outstanding investment differences between companies can be
mentioned as the battery pack, the performance of the rotor, the frame structure,
obstacle sensor, camera stabilization and extra features.
c. Manufacturing Cost
 There is a big difference in the cost of different materials and additional features
among companies due to the different quality policies and customer segments
each company is targeting.
 It is possible to see the slight difference in the income level of workers among companies (the difference of
more than $ 1,000 between the highest and lowest paying company) so that the productivity is not
significantly different.
 The cost of assembly production between companies has a big difference,
possibly due to the difference of the application of the robot and the use of labor.
 The difference between the number of factories and the work space is similar.
II. Competitive Analysic

1. AC Camera
a. North America
 The direct rival of Company C is Company D
 Company D with P/Q of 4.8 and price $ 249 had the same number of
models
 Brand reputation of Company C and D was the same in year 6, so that
the competition of two company is the same
 Therefore the investment in marketing activities was different, Company
D focused on the retailer support $ 6.15 / unit higher than Company C by
$1.68. Advertising Budget and Website Displays had light higher by
$100,000
 However, company had advantage in Sales Promotions —Weeks
Discount with 15% compared to 12% of company D
 In the year 5 the demand ratio of Company D was about 21.6% but they
suffered loss so that the market share decreased slightly. Nevertheless
Company D had the higher market share 21.4%, also highest market
share in the whole market.
b. Europe-Africa
 Company D is a direct competitor of our company.
 Company D uses a strategy with P / Q of 4.8 at a price of 249 with 3
models.
 Our company succeeded in investing in advertising to increase sales with
$ 2300 used and sold 282 products compared to company D using only $
1500 with 259 products sold. The good news is that our company is
leading in the market share of cameras sold with 22.1%.
 Investing in retailer support seems to be less effective for both
companies B and D when both companies have a relatively high level of
support compared to retailers (respectively at $ 6.95 and $ 5.97. ).
However, the market share of both companies is lower than ours with a
support level of only $ 4.79 (the lowest compared to competitors)
c. Asia-Pacific
 The direct rival of Company C is Company D
 Company D with P/Q of 4.8 and price $ 230 had the same number of
models
 Brand reputation of Company C and D was the same in year 6, so that
the competition of two company is the same
 Company D still focused on the retailer support $ 5.18 / unit higher than
Company C . But money invested in Advertising Budget of company D
was lower than company C by $200,00. And Sales Promotions —Weeks
Discount in two company was the same
 In the Asia-Pacific market, company C had the biggest market share with
26.4%, it would be the competitive advantage in the market.
d. Latin America
 For the Latin American market, it seems that our company competitor has changed
when we had to deal directly with company A instead of company D as the other
markets.
 Our company had a greater competitive advantage with P / Q of 4.5 and selling price of
230 compared to company A with P / Q of 4.0 and selling price of 225. In addition, with
a retailers support control strategy, we also succeeded in gaining a bigger market share
(21.3%) despite investing only $4.23 in retailer support compared to $5.65 of company
A.
2. UAV Drone
a. North America
 In the North American market, company D continues to confront directly with us in
dominating the UAV market share.
 Although our company has a higher competitive advantage with P / Q 4.8 compared to
company D P / Q 4.4, company D still has a higher market share (21.7%) than our
company only 21%. This superiority might be due to the strategy of producing company
D's 3 models (compared to our one model) and the price strategy is more effective
when the price of company D is $ 250 cheaper than our company.
b. Europe-Africa
 In the European Africa market, once again, company D continues to be a direct
competitor of our company. Similar to the North American market mentioned above,
our company has a higher competitive advantage with the P / Q 4.8 than our company
with the P/Q of 0.4.
 Whether spending more money in Website Displays, Search Engine Advertising, Retailer
Recruitment, this strategy seems to be ineffective when our market share is still lower
than company D (19.4% vs. 23%) . Perhaps part of the reason is that company D has had
a wise move to increase discount to online retailers (up to 17% compared to our
company by only 14%) to entice more retailers and also increase diverse in products
when continuing to produce up to 3 models (compared to our company only 1 model)
c. Asia-Pacific
 In the Asia Pacific market, our company has a hard time dealing directly with two
companies A and D. Our company once again occupies a higher competitive advantage
with P / Q of 4.8; 0.4 and 0.8 higher than companies D and A respectively.
 However, with the more effective price strategy of company D combined with the
variety of products, D has dominated this market with a market share of 21.8%, only
0.1% higher than our company.
 Meanwhile, company A also has a relatively high market share (only 1.9% lower than us)
with the use of effective pricing and advertising strategies.
d. Latin America
 In the Latin America market, once again, company D continues to be a direct competitor
of our company. Similar to the North American market mentioned above, our company
has a higher competitive advantage with the P / Q 4.8 than our company with the P/Q of
0.4.
 The two company had the same price of product purchased $ 230
 Advertising budget and Retail Support of company D is higher slightly than company C.
However, company C invested more money in website display $ 900,000. Besides that,
the number of online retailers and local retailers of two company were the same.
III. Company C
1. Balance Sheet
Picture 1: Year 5 Picture 2: Year 6
 We have no any change in balance sheet between Year 5 and Year 6, Current
Assets and fixed asset investment also was the same. We did not have any loan
so liabilities was not different
 Additional Capital and shareholder equity change in year 5 and 6 the same
amount of money, so that ROE in year 5 and 6 were the same
2. Business Operation Report
Revenue in year 5 and 6 was the same, revenue in North America dominated in the AC
($72,035,000) and UAV ($ 77,594,000) markets, which was double compared to the lowest
revenue Latin America ($ 35,421,000 and $ 24,701,000)
3. Cash Flow Statement
 The beginning cash is the same because there is no activity happened in year 5
 In year 6 we upgrade robotics $ 42,000,000 and the amount of money used or facilities
improvement was $ 5,500,000
4. Selected Financial Statistics

AC Camera: I. Industry Analysis

Uploaded by

Copyright:

Available Formats

AC Camera: I. Industry Analysis

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

AC Camera: I. Industry Analysis

Uploaded by

Copyright:

Available Formats

Company C

ASSESMENT OF YEAR 6TH COMPANY’S PERFORMANCE

 However, there is a marked difference in the demand for AC products in 4 markets.

II. Competitive Analysic

Picture 1: Year 5 Picture 2: Year 6

You might also like