1. Situation Analysis

2. Objectives
Gain a more complete understanding of the Capstone simulated industry
Gain a more complete understanding of the tools and techniques used in industry and market analysis
Become familiar with the Capstone decision support software you will be using.
NOTES:

3. Components Pricing Calculations Perceptual Map Demand Analysis
Margin Analysis
Consumer Report
Capacity Analysis

4. PERCEPTUAL MAP 5 4 2 3 1
Performance

5. PERCEPTUAL MAP 5 4 2 3 1
Performance

6. FUTURE SEGMENT POSITIONS (pp. 18-20)
Segment Drift
Segment Centers For Each Round 1 2 3 4 5 6 7 8
Traditional
Performance
5.0
5.7
6.4
7.1
7.8
8.5
9.2
9.9
10.6
Size
15.0
14.3
13.6
12.9
12.2
11.5
10.8
10.1
9.4
Low End
2.5
3.0
3.5
4.0
4.5
5.5
6.0
6.5
17.5
17.0
16.5
16.0
15.5
14.5
14.0
13.5
High End
7.5
8.4
9.3
10.2
11.1
12.0
13.8
14.7
12.5
11.6
10.7
9.8
8.9
8.0
6.2
5.3
9.0
10.0
11.0
13.0
16.3
15.6
14.9
14.2
12.8
12.1
11.4
3.7
4.4
5.1
5.8
7.2
7.9
8.6
7.0

7. Drift Rate Adjustments
Segment
Performance
Size
Traditional
+.7
-.7
Low End
+.5
-.5
High End
+.9
-.9
+1.0
-1.0

8. DEMAND ANALYSIS (p. 21)

9. CAPACITY ANALYSIS (pp. 21-22)

10. What Would it Cost: To Double Capacity? To Maximize Automation
To add one unit of capacity
$6+($4*Automation level)
To double capacity
Current capacity * ($6 +($4*automation))
To Maximize Automation
Current Capacity * ((10-current automation)*$4)

11. MARGIN ANALYSIS (pp 22-23)

12. CONSUMER REPORT (p. 24 )

13. Consumer Report Price and Reliability Positioning Awareness
Good (top third of expected range)
Fair (middle third of expected range)
Poor (bottom third of expected range)
Positioning
Good – product within .5 units of ideal spot
Fair – product within .6 to1.5 units away
Poor – product beyond 1.5 units
Awareness
Good – Awareness >.80
Fair – Awareness between .50 and .80
Poor –Awareness<.50

14. Consumer Report Accessibility Overall Good – Accessibility >.80
Fair – Accessibility between .50 and .80
Poor –Accessibility <.50
Overall
Assess using relative importance of buying criteria

15. Points to Consider for Strategy
Strive to give customers products that maximize top two criteria
Perceptual map is more important as rough cut than as fine cut
Takes time and maintenance to build a solid product – Invest routinely
Strive for accuracy in matching production to demand
Higher product demand requires a better product offering