Four year strategic plan for Erie Capsim Company Essay

The intravenous feeding year strategic plan exit snap on cay drivers of the industry, factors determining future of the companion, industry attractiveness, and its competitive environment. individually prick contains detailed subsections which clearly defines the strategic plan. The plan uses 2009 data and our four year plan runs up to 2013.1.1 Driving ForcesIn this industry on that point argon many crusade forces. Our top management uses the concept of driving forces to r distributively consensus on what strategic area represents the industries current driving force.1.1.1 research and DevelopmentOur confederation go away be introducing a new gamy polish off carrefour all year. In addition we impart computer storage our performance and size segment products into our initial targeted sections. This bequeath enable a stream or products lined up along the mellow End, tralatitious, and down(p) end sections. In addition we provide allow present traditional section p roducts to become a Low End section product so as to create room for segment drift. The company go away later introduce a new product to the High End and will finally have four products each in the Low, Traditional, and High end sections during those four years. This way the company will present to clients products in line with their perfect procedure for age, reliability, and positioning. Also the company endeavors to let its existent product line, take in presence in each section, and strive to sustain its products in the conterminous four years in spite mellowed levels of automation.1.1.2 MarketingMarketing is some other main driving force. At outset our company will attempt to assert pace with the approachability and knowingness of immediate competitors products. Ideally we will be revisiting our situation every(prenominal) year for the next four years to determine whether advancement and sales budgets should be sized or if the company will lapse matching that of c ompetitors. Generally our company will offer products at decrease prices. Also for these four years our company is planning to spend precipitously in sales and promotion in targeted sections Low, Traditional, and High sections. In this clear-cut every client will have known our superb designs for the next four years. Basically, we are planning simplify logistics involved in identifying products by customers. After defining the companys cost leadership position, we will reconsider the companys situation to explore alternatives to enhance accessibility and awareness.1.1.3 ProductionSignificantly our company will significantly increase automation levels on all products in the next four years. Since automation limits the companys ability to reposition its products in line with R&D, we will edge our automation process in the Low and Traditional sections in the next two years and then High end section during the last two years. Our company will ensure capacity create to meet the gene rated demand. In the first half we will reposition our brands. However, in the last half we will evaluate ways of increasing in automation levels to enhance margins as well as repositioning products and sustaining sections as they traverse the perceptual map.1.1.4 FinanceThe nature of our industry allows it to draw cash in hand from a wide source. During the first half the company will pay its investments mainly through bond issues supplementing with stock offers following an as unavoidable basis. For last half, the company will develop a divided indemnity and start to retire stock. The company is not adverse to leverage and vista is that we will sustain debt/equity ratio at 2.0-3.0.1.2 Future key success factorsFactors for success in our company include1.2.1 ConcentrationOur company will concentrate on Low, Traditional, and High end sections. This will keep production costs, raw material costs, and R&D costs to a minimum. Also company product lifecycle concentration will enabl e us to reap sales for the next four years on each of the four new products to be introduced into High end section.1.2.2 Brand wisdom and awarenessThe company will state presence in every section. We will endeavor to ensure a competitive edge by differentiating our products. This will be done through excellent design, easy accessibility, and uplifted awareness during first half. In the other half, the company will start up a competent R&D that ensures fresh and exciting designs. Products will be in line with the merchandise needs, presenting enhanced performance and size.1.3 drawing card of industry and competitive environment1.3.1 Factors making the industry attractiveseveral(prenominal) factors make our company to be attractive. These are factors that will determine how cold our company can remain still. These include Reliable products will ensure products which are reliable to mainstream clients and brands that offer value. Premium products our company offers good produ cts and brands that will stand the test of time. Low price the company offers products at trim prices. Its brands offer solid value. Easy technology our products are reliable compensate to low technology customers1.3.2 factors making the industry unattractive Funding the market is unpredictable and there getting enough financial support is a problem Extensive research product sustainability requires an extensive research. This adds to cost by way of experts and professionals.1.3.3 special industry issues/problems Product presence our company plans to maintain a competitive advantage by ensuring presence in every section. Unrelenting focus concentration ensures brand recognition which leads to unique prospect over competitors. Substitutes the company is likely to suffer incase substitutes flood market, specially during last half. New entrants during the first two years the company will enjoy monopoly but in last two years entrants are likely to enter the market.1.3.4 Profit out lookThe company currently is enjoying a advantage margin of 20%. This strategic plan aims to grow the profit by additional 10% for first two years and another 15% in the last two years.