Computer Manufacturers Essay

3295 words - 14 pages

This report contains information that may constitute "forward-looking statements." Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future — including statements relating to volume growth, share of sales and earnings per share growth, and statements expressing general views about future operating results — are forward-looking statements. Management believes that these ...view middle of the document...

Our approach to Quarter 11 was to raise price as well as lower rebates across all products to bring demand down to where our operating capacity could match our demand. We also had our R&D investment of an ultra high power/speed feature ready to be inserted into our Work Horse and Innovator products. This feature allowed Lone Wolf Tech to stay at the top of each market and allows us to achieve our greater value at greater price strategy.
Lone Wolf Tech has the leading brand judgment (p.28 Table #11) throughout the entire United States in the Innovator and Work Horse segments. We are tied in Brand Judgment in the Traveler section with Initek and have been for the past 3 quarters. We have invested in two R&D products, Long life battery and 15” high-resolution screen, coming into Quarter 12 and will be done Quarter 13 that will allow for us to gain the advantage needed to take over the Traveler sections brand judgment. We are also leaders in the Canada market for the Innovator segment with a brand judgment of 80. (p.28 Tables #11-12) We are also tied in the Work Horse market with Status, but with the addition of our Ultra High power/speed processor that will be in our products Quarter 12, we foresee taking back the Work horse market.
To go along with our greater value at a greater price strategy we also raised price again. We have the highest prices throughout the entire United States, Canada, and China. (p.29-32 Tables #13-15) We are able to increase price to above all of our competitors since we have achieved greater value according to the brand judgment scores. To see that we have achieved the greater price goal, once we raised price we still had stock outs and were still able to generate even more demand than the previous quarter.
Gross Sales (p.9 Table #2) for Quarter 11 increased to $20,630,400 in Q11 from $13,138,800 in Q10 with an overall change of $7,491,600, or 57% this large increase is due to 2 different reasons. We first increased price on all products to between five and ten percent increase. This increase in price was put in place to handle our increase in demand that we were incapable of fulfilling as well as increase revenues and profits. Price was also raised to compensate for new hard drive that was now available for production. We also expended our factory size by 25 units a day allowing us to produce a little over 1200 more units.
Gross sales (p.13 Table #7) increased due to total sales increase of 1,408 units in Quarter 11. This was possible even with the increase in price and decrease in rebates, because our demand was close to 9,000 and our operating capacity was only at 6,000 units a quarter. This increase in units sold was due to increased demand over are total operating capacity which allowed us to increase our factory capacity by 25 units a day and still have unmet demand. With our increase in price, we had an overall sales increase of $7,711,288. This was due to an overall increase of $2,113 of increased price...

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