1. MARKET SIMULATION
Presenters: Xuequing Chen
Yen Hoang
Zhengyao Shao
Instructor: Prof. James White
MGT 570 – Business Strategies & Industry Analysis

2. — * —
BUSINESS OVERVIEW
Mission Statement
“DigiRecover is committed to providing right products to right customers with
outstanding quality and unsurpassed customer service”
Board of Directors
1. Zhengyao Shao
President
Vice President of Manufacturing
2. Xueqing Chen
Vice President of Marketing Research & Accounting and Finance
3. Yen Hoang
Vice President of Sales Management & Marketing

3. — * —
MARKETING MATERIALS SELECTIONS
Quarter 2 & Quarter 3

4. — * —
MARKETING MATERIALS SELECTIONS
Quarter 4 to Quarter 8

5. — * —
BUSINESS STRATEGIES
 Target segments
1st
– Innovator; 2nd
– Cost Cutter
 Market size
Focus on large, high margin segment
 Geographic market
- Focus on largest geographic markets, even if they are more expensive (Europe)
- Focus on geographic markets which are in middle of the cost/size continuum (APAC)
- Focus on geographic markets which minimize distribution costs (North America)
- Focus on smaller, less costly geographic markets (Latin & Africa)
 Competitive posture
Be a fast follower, imitate smart competitive moves
 Distinctive competencies
- Provide reliable product in the market
- Be the lowest price provider
- Gain highest productivity

6. — * —
KEY PERFORMANCE INDICATORS
Strengths:
• Investments in future
• Asset Management
• Manufacturing Productivity

7. — * —
KEY PERFORMANCE INDICATORS
Weaknesses:
• Market Performance
• Wealth
• Financial Risk

8. — * —
FINANCIAL STATEMENTS

9. — * —
FINANCIAL STATEMENTS

10. — * —
FINANCIAL STATEMENTS
Investing Activities:
• Fixed Plant Capacity: 600,000(Q2) 3,100,000(Q5)
600,000(Q6) 1,300,000(Q7) 1,000,000(Q8)
• Sinking Fund: 100,000(Q6) 200,000(Q7)
200,000(Q8)
Financing Activities:
• Borrow Long-Term Load: 2,000,000(Q6)
2,000,000(Q7)
• Borrow Emergency Load: 225,932(Q3)
• Repay Emergency Load: 225,932(Q4)

11. — * —
SALES
Sales and demand(Units)

12. — * —
SALES
Demand Analysis
Channel
Region
Product
17806
62%
10752
38%
2920
10 %
12999
45 %

13. — * —
SALES
Sale Offices & Web centers

14. — * —
SALES – Sale Forces
Sales Forces Analysis
• Special Sales Force
Programs: $519,700
• Sales Force Promotions:
$157,000

15. — * —
HUMAN RESOURCES
Factory Workers

16. — * —
HUMAN RESOURCES
Sale People

17. — * —
MARKETING RESULTS - Brands
 Brand profitability: Digi Pro = $24,867,286
Digi Star = $2,572,171
Brand Judgment
- Innovator – Digi Pro - 83 points
Competitor: Legendary - 88 points
- Cost Cutter – Digi Star - 65 points
Competitor: A&M - 65 points

18. — * —
MARKETING RESULTS - Price
 Price judgment: 100 points
+ Digi Star: $1,800 - $2,100 (higher)
+ Digi Pro: $3,400 - $3,600 (lower)

19. — * —
MARKETING RESULTS - Advertisement
Judgment: Good (Digi Star = 83 points; Digi Pro = 85 points)

20. — * —
MANUFACTURING
Factory Location: NORAM - Mexico City

21. — * —
MANUFACTURING

22. — * —
MANUFACTURING

23. — * —
MANUFACTURING

24. — * —
SWOT ANALYSIS

25. — * —
LOOKING FORWARD STATEMENTS
Give up Cost Cutter, enter into Travel or Workhorse
Willing to take risk by borrowing loan from bank for future investment in:
- Upgrading products
- R&D
- Open sales offices & web centers in big geographical markets
- Advertisement
- Human Resources
- Fix capacity
Continue learning from other competitors

26. — * —
THANK YOU!