ANN AL

E O
E A ED B E EN ED O
En Routé T g Thị Mi h L
Compan E Industr
 TABLE OF CONTENTS

A. BUSINESS PERFORMANCE – Y11_____________________________________________________ 1

I. INDUSTRY OVERVIEW ___________________________________________________________ 1
1. Trends, Features, P/Q Rate and Demand ________________________________________________________________ 1
2. Investor Expectations ____________________________________________________________________________________ 1
3. Marketing Investment ___________________________________________________________________________________ 1
3.1. AC Camera ________________________________________________________________________________________ 1
3.2. UAV Drone ________________________________________________________________________________________ 2
4. Revenue and Profit ______________________________________________________________________________________ 3
II. COMPETITIVE ANALYSIS _________________________________________________________ 4
1. AC Camera ______________________________________________________________________________________________ 4
1.1. North America _____________________________________________________________________________________ 4
1.2. Europe - Africa ____________________________________________________________________________________ 6
1.3. Asia – Pacific ______________________________________________________________________________________ 8
1.4. Latin America _____________________________________________________________________________________ 10
2. UAV Drone _____________________________________________________________________________________________ 12
2.1. North America ____________________________________________________________________________________ 12
2.2. Europe – Africa ___________________________________________________________________________________ 15
2.3. Asia – Pacific _____________________________________________________________________________________ 17
2.4. Latin America _____________________________________________________________________________________ 19
III. INTERNAL ANALYSIS____________________________________________________________ 21
1. Company Strategy ______________________________________________________________________________________ 21
2. Company Performance _________________________________________________________________________________ 21
2.1. Decisions and Changes in Y11 ___________________________________________________________________ 21
2.1.1. Product ______________________________________________________________________________________ 21
2.1.2. Marketing ___________________________________________________________________________________ 22
2.1.3. Assembly and Facility Operations __________________________________________________________ 24
2.1.4. Corporate Social Responsibility and Citizenship (CSRC) _________________________________ 25
2.1.5. Finance ______________________________________________________________________________________ 26
2.2. Result _____________________________________________________________________________________________ 27
2.2.1. Marketing performance _____________________________________________________________________ 27
2.2.2. Financial Performance ______________________________________________________________________ 29
B. NEXT YEAR'S STRATEGY __________________________________________________________ 30
I. GENERAL PLAN _________________________________________________________________ 30
II. IN-DEPTH PLAN _________________________________________________________________ 30
1. Product Design _________________________________________________________________________________________ 30
2. Marketing _______________________________________________________________________________________________ 30
3. Financial strategy _______________________________________________________________________________________ 31
4. Compensation & Facilities _____________________________________________________________________________ 32
5. Corporate Social Responsibility and Citizenship (CSRC) _____________________________________________ 32
 1

A. BUSINESS PERFORMANCE – Y11

I. INDUSTRY OVERVIEW
1. Trends, Features, P/Q Rate and Demand

Overall, the industry average wholesale price of ACC products in Year 11 has increased to
$386/piece (up $10 compared to Year 10).
Regarding the UAV drone, the average selling price for a product has increased by $304 in the
11th year.
Most companies increased the P/Q of both ACC and UAV.
There is a slight increase in the industry average demand for AC cameras of 2000 and 3750 for
UAV drones.

2. Investor Expectations

Investor expectations include Return on equity (ROE), Earning per share (EPS), Stock price,
image rating.
According to the key performance measures of the whole industry calculated in glo-bus, the
expectation of credit rating is A and there are just 2 companies meet this requirement perfectly
which are A. On the other hand, 4 companies set their image rating above the investor
requirement which is 77 except for the company A and company B which has the image rating
of 76 and 75 respectively.
Regarding the EPS, all companies did very well with the figure being above 7.0 and that of
company E is the highest at 9.9.
Relating to the ROE, the performance of all companies is generally good when all companies
pass the minimum requirement with the surprising result. In details, the company E reach the
highest ROE at 171.0 which is approximately tripled than the investor expectation.
Overall, we can conclude that nearly all companies have satisfied their investor expectations
and the market leader in year 11 is company E.

3. Marketing Investment
3.1.AC Camera
• North America: this is considered the market with the highest investment in Marketing
costs, especially advertising costs up to $6350. North America is also considered the market
with the highest sales compared to the rest when up to 269 200 AC, which helps this market
to achieve the highest profit and profit margin. The total market share of AC products in
North America is the highest, accounting for 16.3%, and the market share of AC of
 2

company E is quite low when it reaches 16.3% lower than the industry average (16.7%)
and has been promoted strongly. The E company 's multi store chains and outlets also
account for a stable number compared with other rivals. Besides, the retailer support of
company E is at a low level when accounting for $12.26 higher than the industry average
($12.49).
• Europe-Africa: is also considered as a high marketing investment market, second to North
America with a cost of $6100. Sales of AC products in this market are also quite high, third
only to the North America and Asia-Pacific market when accounting for 250 500 AC. The
total market share of AC products in this market reached a high level when accounting for
16.1%, company E's market share for this product low when accounting for 16.1%, lower
than the average level (16.7%). The advertising budget of company E is also high when
taking $6100 much higher than the industry average and the cost for website displays is
also at a stable level. This results in the increasing level of demand for AC units
• Asia-Pacific: company E has relatively little investment and spends $3700 on marketing
activities, higher than the industry average although this is a fairly price-sensitive market.
Moreover, compared to the regional average, company E's sales per unit of AC product
reach a low level when it accounts for 258 600 AC, and company E's market share in this
market is also low when it comes to accounting for 14.1% compared to other rivals (2.6%
lower than the regional average). Therefore, the profit margin of company E in this market
is also at a low level.
• Latin America: is the market in which company E has a low marketing investment
compared to its competitors and compared with the rest of the markets with a cost of $2600,
and it is the market with a low market share of 15.3% and with the sales at 206 600 AC,
much lower than the regional average and is considered as a low level in industry 4. Of all
the four markets in which E invests, this is the most price-sensitive region. Therefore, to
develop products in this market, company E needs to re-research the product, and at the
same time offer a reasonable price combined with strong investment in marketing to spread
the product to consumers.
3.2.UAV Drone

In Y11, marketing investment was more focused on UAV because the UAV market had a more
significant segment and was not as diverse as AC Camera products. North America did not
continue to have the most prominent marketing expenditure ($5743), but with the highest total
unit demands (63.0). The highest investment expenses for the Europe-Africa region were
 3

$5756 and this was the first time that Europe Africa attained the highest level of investment
cost in the region. These two markets had higher unit costs per product sold than Asia-Pacific
and Latin America. As a result, firms needed to combine various techniques to maximize
resources to enhance sales and profits in addition to spending on marketing expenditures. There
was a slight differential in marketing investment expenses between the Asia-Pacific and Latin
American markets. Although revenues in these two areas were lower than in North America
and Europe-Africa, marketing expenses per product sold were lower. They are two potential
future markets. Consequently, it is crucial to continue to develop the marketing strategy in
these two areas by concentrating on increased investment in the coming years.

4. Revenue and Profit

4.1.AC Camera

In Y11, the industry average revenue was $381,478,000 which increased by 1.96 % compared
to Y10 and indicated that the industry sales and operations were much more efficient than Y10.
The operating profit achieved $75,910,000, an increase of 2.14% from Y10, showing that all
the companies had better strategies for their products this year. Company E was at rank 1 for
its excellent performance in marketing when they spent an average marketing cost but earned
the second-highest revenue in the industry. Company D's revenues and net profit were higher
than the industry average and as high as company E, showing that our marketing strategy was
much more effective when we spent too much on every marketing channel with thorough
consideration.

4.2.UAV Drone

In terms of UAV Drones, the industry average revenue reached $497,662,000 in Y11, an
increase of 19.71% in comparison with Y10, thereby also demonstrating the efficiency and
strong development of industry 4. Even though UAV Drones gained less revenue than AC
Camera, it still showed a high potential of expanding in the North America and Europe-Asia
Pacific market in the future. Overall with both product lines, operating profit achieved
$851.910,000, accounting for an increase of 23.47% compared to Y10, which was considered
as a good performance. This year's profit also showed the effectiveness of the company's
marketing strategy.

II. COMPETITIVE ANALYSIS
1. AC Camera
1.1.North America
A B
Company
Overview The strategy A applied in
year 11 was effective as it
set the P/Q rating lower
than the average and the
price is inexpensive. It
didn’t achieve its goals
but gained a high level of
market share (16.7%)
Strategy Low cost, low price
strategy
Price and Company A’s P/Q was 7.2,
P/Q thereby increasing the
rating price to $398/product.
Company A had to
compete severely with
4
C D
B set a low P/Q rating for C had not set up a good
AC, the price was cheap strategy. It sold AC with a
($412) in comparison high P/Q rating 7.9* and a
with other competitors. high price of $495.
Consequently, B had Overall, this strategy led
gained high market share to a low level in the
in this market with market share of company
(16.6%) C (13.4%)
Low cost, low price Differentiation strategy
strategy
Company B’s P/Q rating P/Q rating was 7.9, which
was 7.7 and price was was a high P/Q rating. The
$412 per product which prices were also high with
was fairly reasonable. $495 and the company
could not achieve a high
Like company C, Company
D set the P/Q rating (7.9*)
and the price ($491) at a
high level, which made it
hard to sell products and
gain market share. The AC
camera units sold of D were
also at the lowest level.
Differentiation strategy
P/Q rating was 7.9. The
price was quite similar with
Company C ($491). This
was not an effective strategy
F
Overall, F set a low
price ($314) and the
lowest P/Q rating
(6/0*) for AC cameras.
It focused more on
profit, unit sold and
market share. This was
an effective strategy
for company F.
Low cost, low price
strategy
The product line of
company F was aimed
at the low-end segment
with the star level 6.0
and the product price
 5

company B to gain market position in the rankings that can help D gain market ($314) was quite low
share and attract and market share. share and profits compared to the
customers. industry average.

AC The number of product The number of product The number of product The number of product units The number of product
Camera units sold was 275.7 , units sold was 274.6, units sold was 221.3, this sold was 213.3 and this was units sold was 401.8
Units Sold which was higher than the which was lower than the was considered as a low the lowest level and this is the highest
average performance of industry average. level with wrong strategy. level.
industry 4.

Market The company's market The company's market The company's market The company's market share The company's market
Share share was 16.7% which share was 16.6% which share was 13.4%. This was 12.9% and this was the share was 24.3%
was considered as a high was lower than the number was at a low level lowest level among 6 which was considered
level compared to other average of the industry just because of the high companies as the highest level.
rivals. P/Q ratings and high price

Conclusion
The North American market was considered as a potential market for Action Camera product development. In this market and in year 11, E focused
on improving quality, P/Q rating with 8.0*, brand reputation, etc. The advertising and website display segment was invested heavily compared to
other competitors. Company E continued to apply a high price with just $438 higher than the industry average ($425) but lower than Y10 ($465).
Moreover E also focused on advertising and website displays with the goals of attracting more retailers to increase sales revenue and enhance
market share.
 6

1.2.Europe - Africa

Company A B C D F

Overview The strategy A applied Company B’s set up a C’s strategy for AC was Like company C, Company Overall, F set a low price
in year 11 was effective good strategy. It sold clearly to aim at the high D set the P/Q rating at a high ($307) and low P/Q rating
as it set the P/Q rating AC with a high P/Q price market with a high level and the highest price (6.0*) for AC cameras. It
lower than the average rating (7.7*) and low price and PQ in the industry ($477) which made it hard to focused more on profit,
and the price was price. Overall, this (7.9*). Still, company C sell products and gain units sold and market share
inexpensive. It didn’t strategy helped B to ranked low with just 13.8% market share (12.9%). The (23.1%). This was an
achieve its goals but achieve rank 3 in this market share so it might strategy was unwise so D effective strategy for
gained a high level of region so B will change its strategy for year needs to change the plan for company F.
market share (17.6%). continue to use it for 12. year 12.
year 12.

Strategy Low cost, low price Low cost, low price Differentiation Differentiation Low cost, low price
strategy

Price and Company A’s P/Q was Company B’s P/Q P/Q rating was 7.9 and the P/Q rating was 7.9. The The product line of
P/Q 7.2* and still lower than rating was 7.7*, and price was expensive with price was high at $477. company F was aimed at
rating the industry average, the price was $391. $460 Company D had to compete the low-end segment and
besides, its price was severely to gain market the product price was quite
$77 and lower than the share and attract customers. high compared to the
industry average. industry average.
 7

AC The number of product The number of The number of product The number of product units The number of product
Camera units sold was 274.1 product units sold was units sold was 215.3, this sold was 201.6 which was units sold was 360.0.
Units Sold which was higher than 258.9. was a low level compared the lowest level.
the industry average. to the industry average.

Market The company's market The company's market The company's market The company's market share The company's market
Share share was 17.6% higher share was 16.6% share was 13.8% which was 12.9% which was the share was 23.1%, which
than the industry which was lower than was at a low level in the lowest level. Company was was the highest level.
average. the industry average. performance of industry 4. in a difficult situation with thanks to its high P/Q
ineffective strategy. rating and its effective
strategy that allowed
company F to dominate its
own market segment,
avoiding competition from
competitors in the industry.

Conclusion
The Europe-Africa market was a highly potential market for Action Camera product development. In year 11, company E had a price with $435
and PQ rating with 8.0* much higher than the industry average. Consequently, company E could not gain the highest market share with just 16.1%
which sold high PQ at high price. Therefore, company E should set a more reasonable price for our PQ and manage the marketing cost, strategy
more effectively in the next year.

1.3.Asia – Pacific
Company A B
Overview The strategy A applied in
year 10 was quite effective as
it sets the P/Q rating lower
than the average and the price
was inexpensive ($358). It
didn’t achieve its goals but
gained a high level of market
share (16.5%).
Strategy Low cost, low price strategy
Price and The company A set a price at
P/Q rating $358 which was lower than
the average and the P/Q
rating was 7.2*.
8
C D F
In this market, Company C discovered an Company D did not focus Company F has always
Company B’s set up a effective strategy when on the market's weakness, shown its focus on profit
good strategy. It sold pushing the P/Q rating to which was price sensitive, and market share. In this
AC with a high P/Q 7.9* and decreasing the it set prices ($425) higher market, F applied an
rating and low price. price. than the industry average effective strategy that
and with high P/Q rating. could make the company
gains the market share at
high level (23.5%)
Differentiation Differentiation strategy Differentiation strategy Low cost, low price
strategy strategy
B's P/Q rating was Company C had a high Company D had a high The product line of
7.7* and the price is P/Q rating with 7.9* with P/Q rating with 7.9*, but company F was aimed at
$360. The price was a cheap price of $360. its high price decreased its the low-end segment and
lower than the Therefore, the number of market share. the product price of $289
industry average. products sold by C was was quite lower compared
quite high. to the industry average.
 9

AC Company A's product sales Overall, the number Mainly targeting the low- The number of products The number of product
Camera were 302.100 products sold of products sold was priced with high-quality sold was the lowest with units sold was 431.9 and
Units Sold in year 11. 317.500 in this market segment, the only 212.900. this is the highest level.
industry and this is a number of products sold
high level by C was positive with
just 313.100 products
sold.

Market The company's market share
Share in this market was only
16.5% and lower than the
industry average.
Company B in year The company's market Company D's market share The company's market
11 accounted for share was 17.1 higher ranked sixth when share was 23.5% which
17.3% market share than the industry average. accounting for 11.6% was higher than the
lower than the industry industry average
average.

Conclusion
Since the Asia-Pacific region was a price-sensitive market, careful attention when pricing items is essential. In addition, to achieve greater
efficiency, it was necessary to balance the necessary marketing expenses to spend reasonably. Due to the experience of 6 years of testing, in year
11, the market share and the units sold (258.600) of company E did not achieve the highest level among 6 companies like the previous year. This
means in this year with this industry, the strategy that company E applied was considerably inefficient. Our company had better change for a
positive strategy in Y12 for a good performance.

1.4.Latin America
Company A B
Overview The strategy A applied in
year 11 was effective as it
sets the P/Q rating (7.2)
lower than the average and
the price was inexpensive
($344). It achieved its
goals and gained a high
level of market share
(17.8%)
Strategy Low cost-low price
strategy
P/Q Rating P/Q rating was 7.2* which
and Price was lower than the
average. The price was
$344 and lower than the
industry average ($347).
Their marketing and
warranty period were good
but sales promotion was too
short. In addition, the price
($351) was higher than
average and with high ratings
(7.7) so their market share
was also low.
Differentiation strategy
P/Q rating was 7.7*. The
price was $351 and higher
than the industry average.
10
C D F
C’s strategy for AC was Their price was higher In year 11, their strategy
clearly to aim at the high than the average and the was to set low prices
price market with high P/Q ratings are also at a with low P/Q ratings
price and P/Q in the high level. They did not and invest a lot in
industry. Company C do well with the lowest marketing seemed to
held 14.9% market market share (12.1%) work effectively, their
share. market share was also
the highest (25.1%).
Differentiation strategy Differentiation strategy Low cost-low price
strategy
P/Q rating was 7.9* and P/Q rating was 7.9* P/Q rating was 6.0* and
this was a high level in higher than the average. lower than the average.
this industry. Their price The price was expensive The price was $276
was quite high with with $412 much lower than the
$350 higher than the industry average ($347).
industry average
 11

AC 240 100 units sold which 199 500 units, and this was 201 200 units sold which 163 400 units sold which 339 200 units were sold,
Camera was higher than the at a low level among 6 was lower than the was the lowest level this was considered as
Units Sold industry average companies. industry average. because they set a high the highest level among
(000s) price and their sales 6 companies
promotion was not
attractive enough.

Market With the above demand, A Their market share was just This market share of C With the lowest demand, F’s market share was
Share had the market share of 14.8% which was also lower was at a low level with D was at the lowest in 25.1%, ranking 1st
17.8% higher than the than the industry average. 14.9% the market share with among 6 companies.
average 12.1%

Conclusion
For Latin America was a price-sensitive market, in year 11, the strategy that company E was using seemed to work but was not very effective as
our market share could not reach a high level at 15.3%, ranked 3th among 6 companies. In the next few years, we will still spend more on R&D
to increase our P/Q rating, and raise our models higher to attract more potential customers. In addition, we will invest more in advertising budget
to get more market share from other competitors as our goal in this market is to fight for as much market share as possible. Overall, the strategy
in year 111 was not very efficient and needed further improvements for better performance in the future.

2. UAV Drone
2.1.North America
Company A B
Overview Company tried to invest a lot
of money on advertising
budget, the price ($3190) was
quite expensive in comparison
with other competitors, which
made their products
unattractive. This makes their
market share decrease 14.5%.
Price (average The price was quite high
direct-sale $ compared to industry
per unit) correlation and other
competitors with $3190
(higher than industry average).
Strategy Differentiation strategy
12
C D F
Company B’s PQ C had set up an effective Company D failed to With the highest P/Q
was 7.6* but with a strategy. It sold UAV gain the market share rating (8.2*) but at a
considerable price, with high P/Q rating but (14.3%) and UAV units low price, company F
which made its with a cheap price. sold at a low level achieved 21.8% market
demand lower and its Besides, it paid attention because D set a high share, higher than the
market share also to marketing strategy to price for the product but average.
decreased with 15.8% gain 16.4% market share. with a low P/Q rating.
The price was quite The price was at a low The price was at a high The price was quite low
low ($2948 for 7.6 price $2875 compared to level ($3130) with 7.8 $2674, which was quite
P/Q) compared to industry correlation and P/Q ratings low compared to
other competitors other competitors. competitors in the
(lower than industry industry and much
average). lower than the industry
average.
Low cost low price Differentiation strategy Differentiation strategy Differentiation strategy
strategy
 13

Discount to Year 11 figure was 14% which Year 11 figure was Year 11 figure was 11% Year 11 figure was 11% Year 11 figure was
Online was lower than E (15%) and 12% which was which was lower than E which was lower than E 20% which was higher
Retailers higher than the industry lower than the and the industry average and the industry average than E and higher than
average (13.8%). industry average (13.8%). (13.8%). the industry average
(13.8%). (13.8%).

P/Q Rating P/Q rating for year 11 was 7.8 P/Q rating for year 11 P/Q rating for year 11 was P/Q rating for year 11 P/Q rating for year 11
which was lower than industry was 7.6 which was 7.9 which was the same was 7.8 which was lower was 8.2 which was
average (7.9). lower than the as the industry average. than industry average. higher than the industry
industry average. average.

Retailer Retailer recruitment was Retailer recruitment Retailer recruitment was Retailer recruitment was Retailer recruitment
Recruitment $205.67 per unit, which was was $183.11 per unit, $141.84 per unit, which $166.67 per unit, which was $112.60 per unit,
($ per unit) higher than industry average which was higher was lower than industry was higher than industry which was lower than
($157.89). than industry average average ($157.89). average ($157.89). industry average
($157.89). ($157.89).

UAV Drones Demand for all UAV drones Demand for all UAV Demand for all UAV Demand for all UAV Demand for all UAV
Unit Sold was 53.2, which was lower drones was 57.7, drones was 59.9, which drones was 52.3, which drones was 79.9, which
(000s) than industry average (61.0). which was lower than was much higher than was lower than industry was higher than
industry average industry average (61.0). average (61.0). industry average (61.0).
(61.0).
 14

Market Share With high price and P/Q
rating, A gained a small
portion in the North America
market. Its market share was
ranked 5th with 14.5% among
6 companies.
Company B's market The company's market The company's market The company's market
share was 15.8% share was 16.4% and this share was 14.3% which share was 21.8% and
which was lower than was a high level. was considered as the this is the highest level.
industry average. lowest level in the
industry.

Conclusion
The North American market was a potential market with low price sensitivity. With the differentiation strategy, in year 11, our company (E) was
ranked 2nd and quite successful in North America as it gained a lot of profit, market share (17.2%) and UAV units sold from this market. However,
company E still needed to have other plans to achieve the goals of maximizing profits as well as increase the gap with other competitors such as
improving brand awareness so that more people know about the company, attracting online retailers and 3rd party retailers, or investing more in
advertising budget and customer discounts to attract more customers, gain higher sales revenue and improve the ranking position in the industry
for better performance.

2.2.Europe – Africa
Company A B
Overview Company A clearly aimed
at the high price market
with a high price ($3270)
and PQ (7.8) , which made
their products unattractive.
However, this makes their
market share decrease by
14.9%.
Price (average The price $3270 was quite
direct-sale $ expensive compared to
per unit) industry correlation and
other competitors
Strategy Differentiation strategy
Discount to Year 11 figure was 13%
Online which was lower than the
Retailers industry average (13.5%).
P/Q Rating P/Q rating for year 11 was
7.8 which was lower than
industry average (7.9)
Company B’s PQ was 7.6*
and with a low price,
which made its demand
higher and its market share
was also high with 16.1%
The price was low ($2960
for 7.6 P/Q) compared to
other competitors (lower
than industry average).
Low cost low price
strategy
Year 11 figure was 12%
which was lower than the
industry average (13.5%).
P/Q rating for year 11 was
7.6 which was lower than
the industry average (7.9).
15
C D F
C had set a negative D set a high price for With high P/Q rating
strategy. It sold UAV the product with a low (8.2*) but at a low
with an average P/Q P/Q rating (7.8*), so D price, company F
rating and with high gained the market with achieved 23.1% market
price. The market share the lowest market share share.
was 14.6% (13.9%).
The price was also high The price of $3178 was The price was low with
with $3275 in industry a high number $2620 but with a high
and higher than industry compared to industry P/Q ratings 8.2*
average correlation and other
competitors.
Differentiation strategy Differentiation strategy Differentiation strategy
Year 11 figure was 11% Year 11 figure was Year 11 figure was
which was lower than 11% which was lower 20% which was higher
the industry average than the industry than the industry
(13.5%). average (13.5%). average (13.5%).
P/Q rating for year 11 P/Q rating for year 11 P/Q rating for year 11
was 7.9 which was the was 7.8 which was was 8.2 which was
same as the industry lower than industry higher than the industry
average. average (7.9).. average.
 16

Retailer Retailer recruitment was Retailer recruitment was Retailer recruitment was Retailer recruitment Retailer recruitment
Recruitment $208.70 per unit, which $171.93 per unit, which $171.43 per unit, which was $173.47 per unit, was $104.00 per unit,
($ per unit) was higher than industry was lower than industry was higher than the which was much higher which was lower than
average ($160.33). average ($160.33). industry average than industry average industry average
($160.33). ($160.33). ($160.33).

UAV Drones Demand for all UAV Demand for all UAV Demand for all UAV Demand for all UAV Demand for all UAV
Unit Sold drones was 44.7, which drones was 48.2, which drones was 43.9, which drones was 41.6, which drones was 69.4, which
(000s) was lower than industry was the same as the was lower than industry was lower than industry was higher than
average (50.0). industry average (50.0). average (50.0). average (50.0). industry average (50.0).

Market Share With unreasonable price Company B didn’t spend The company's market The company's market The company's market
and P/Q rating, A gained a much for marketing share was 14.6% and share was 13.9% which share was 23.1% which
small portion of the compared to others but it was at a low level. was considered as a was the highest level in
market. Its market share had high price so its market low level in the the industry.
(14.9%) share is low, which is industry because of the
16.1% highest price

Conclusion
In year 11, with the differentiation strategy, our company (E) aimed at the high end market and was quite successful in Europe-Africa as it gained
second highest revenue from this market in the market share with 17.4%. However, company E still needed to manage marketing costs more
effectively and set a more reasonable price compared to the PQ rating. In the next year, company E will continue applying this strategy to increase
the gap between us and our competitors.

2.3.Asia – Pacific
Company A B
Overview Company A clearly aimed at
the high price market with a
high price ($2990) and a low
PQ , which made their
products unattractive.
However, their market share
decreased by 12.4%.
Price (average This was the company with a
direct-sale $ low price $2990 in this
per unit) market and in line with the
P/Q rating they set 7.8*
Strategy Differentiation
Discount to Company A's discount was
Online 10%, lower than the industry
Retailers average of 11.8%
P/Q Rating Company A had a low P/Q
rating in the industry with
7.8*
17
C D F
Company B’s PQ was C had set up a D set the highest price With high P/Q rating
7.6* with a high price considerable strategy. It for the product with a (8.2*) but at a low
($2710), which made its sold UAV with an low P/Q (7.8*), so D price, company F
demand lower and its average P/Q rating but gained the market with achieved 23.3% market
market share is also low with a low price a low market share share and this is the
with 13.4% ($2350). The market (12.3%). highest level
share is 19.2%
Company B had a fairly The price was also low This was the company The price of company F
high price $2710 with ($2350) in industry and with the highest price at was quite low with
7.6* P/Q ratings lower than industry $3001 with 7.8* P/Q $2425 but the P/Q
average ($2664) rating ratings was at the
highest level with 8.2*
Differentiation Low cost low price Differentiation Differentiation
The company's discount Company C's discount Company D's discount Company F's discount
rate was 10% was 11% lower than the rate was 9% lower than was 20%, which was
industry average. the industry average. the highest discount
among companies
The company had a P/Q Company C had an Company D P/Q rating The P/Q rating of
rating with 7.6* lower average P/Q rating of 7.8* lower than the company F is 8.2*
than the industry average 7.9* industry average. higher than the industry
(7.9*) average (7.9*)
 18

Retailer Company A focused too
Recruitment much on retailer recruitment,
($ per unit) so the cost was relatively
high, reaching $354.43 per
unit.
Company B also had a
pretty high level of
retailer recruitment
$260.14 and did not
invest much, so it did not
cost much
Company C had a low Company D had Company F had a high
investment in retailer invested strongly in selling price and
recruitment and up to retailer recruitment with invested much in
$151.79 per unit. $375.00 retailer recruitment and
achieved $134.50 per
unit

UAV Drones The company's total demand
Unit Sold for UAV was the sum of two
(000s) levels of direct demand on the
website and 3rd-party
retailers, so Company A had
outstanding sales with 28 300
units
The number of UAVs
sold by company B was
relatively low, reaching
30 600 products
The number of UAVs The number of UAVs The number of UAVs
that the company sold that the company had that the company sold
reached 43 800 was relatively low - 28 had the highest price
products 000 products and revenue in the
market - 53 200
products

Market Share Due to the high number of Company B had a Company C gained the Company D had a Company F kept the old
products sold, company A's negative strategy with a market share at 19.2% negative strategy with a strategy of focusing on
market share was very low - low market share - ranking 3rd to company low market share - profit rather than
reaching 12.4%. 13.4% E and F 12.3% market share and
achieved 23.3%
Conclusion
In year 11, because the Asia-Pacific market was enormous and potentially lucrative, it is understandable that there is fierce competition among
enterprises in this industry. Company E might outline a profit maximization or differentiation plan to compete with the other five enterprises. As
a result, company E gained the market share with 19.3% ranking 2nd to F. When our company's market share and sales volume were not at the top
of the industry, and we pursued the common pricing approach, we had achieved unsuccessful progress. However, to truly compete in this market,
the firm must have adequate plans to invest in good parts, boosted marketing, and worked with merchants to make the product known to many
people in the next year.

2.4.Latin America
Company A B
Overview Company A clearly aimed at
the high price market with a
high price ($2950) and a low
PQ , which made their
products unattractive.
However, their market share
decreased by 12.9%.
Price (average Though having a low P/Q
direct-sale $ rating, their price was quite
per unit) high ($2950 for 7.8*)
compared to the industry
average.
Strategy Differentiation Strategy
Discount to 10% lower than the industry
Online average (12.0%)
Retailers
P/Q Rating P/Q rating was 7.8* - a low
level among 6 companies.
19
Company B’s PQ was
7.6* but with a high price
($2640), which made its
demand lower and its
market share was also low
with 13.2%
Having the price at $2640
with the P/Q ratings of
7.6*
Differentiation Strategy
11% lower than the
industry average (12.0%)
P/Q rating was 7.6* and
lower than the industry
average
C D F
C had set up a D set the highest price With low P/Q rating
successful strategy. It for the product with a (8.2*) but at a low
sold UAV with an low P/Q rating (7.8*), so price, company F
average P/Q rating D gained the market with achieved 23.0% and
but with a low price a low market share this is the highest
($2325). The market (12.2%). level.
share was 19.7%
Having the P/Q Their price was the Having the P/Q rating
rating with 7.9* and highest in the industry was 8.2 , F had the
the selling price is with $2971 high price with $2423
$2325.
Low cost low price Differentiation Strategy Differentiation
strategy Strategy
11% lower than the 9% lower than industry 20% - the highest
industry average average (12.0%) discount mong 6
(12.0%). companies
P/Q rating was 7.9* P/Q rating was 7.8* P/Q rating was 8.2*
which was the same lower than the industry and higher than the
as the industry average (7.9*) industry average (7.9*)
average
 20

Retailer $640.00 - much higher than $284.35 - lower than $166.67 - much lower $523.53 - the highest $178.74 - lower than
Recruitment industry average ($323.61) industry average than industry average level in the industry. industry average
($ per unit) ($323.61) ($323.61) ($323.61)

UAV Drone 17.8 units - their sales were 18.2 units. This was a Company C had a 16.9 units which was at a F had the highest sale
Units Sold lower than the industry quite ineffective strategy high UAV units sold low level among 6 with 31.8 units thanks
(000s) average (23.0) with 27.1 units companies to their low price and
effective investment in
marketing.

Market Share Ranking 5th with 12.9% Ranking 4th with 13.2% C attained 19.7% This was a low level at E gained the market
market share market share. 12.2% of market share share of 23.0%

Conclusion
The Latin America market was a potential market, and in year 11, our company has been successful to gain the profit and market share (19%) that
we wanted. The price that we offered to the customer in this market was lower than the industry average and it leveled up our development as well
as our sales. That’s the reason why we spent a lot in marketing, in warranty and sales promotion and then having gained what we had expected.
Along with Asia Pacific, Latin America is also a quite price sensitive area, in year 12, we will consider to re-apply these strategies to attain the
best profit and market share that we targeted.
 21

III. INTERNAL ANALYSIS

1. Company Strategy

Our company decided to use “low cost – low price” for AC Camera and the “more money more
value” for UAV drones in the 11th year.

• Product’s quality

Increase the product expenditure to enhance the product quality: AC Camera expenditure
increased by $50,000,000 and the UAV Drones increased by $50,000,000.
The effort of enhancing the quality of the products in competition to the opponents could be
assessed by increasing the P/Q rating:

o AC Camera: A decrease from 8.2* to 8.0*

o UAV Drone: An increase from 8.1* to 8.0*
• Product’s price
o $435 for every AC Camera in the Europe-Africa market, $438 for each of those in the
North- America market, $389 in Asia-Pacific and $348 in Latin America.
o $2,956 for every UAV Drone in the North American market, $2,940 for every product
in the Europe-Africa market and $2,510 in the Asia Pacific and $2,445 in Latin
America.
o The pricing differentiation occurred in these markets due to the lower demand forecast
in Group 2 (the Asia Pacific and Latin America) compared to Group 1 (North America
and Europe- Africa). Therefore, our company spent less on Marketing investment for
Group 2. Besides, the markets in Group 2 are more price-sensitive than the others, so
the products in this group are undervalued compared to the 2 markets in Group 1.
2. Company Performance
2.1. Decisions and Changes in Y11
2.1.1. Product

In Y11, the company continued to use the same strategy as in Y10. We maintained investment
in product development and improved production results to ensure maximum profit for the
company. Product functions were still being researched and improved thanks to the entire
investment in R&D.
 22

• AC Camera

In Y11, we keep almost all the parameters of AC Camera except the Product Enhancement
with the Included Accessories increased to 18$ per camera. We also increased the number of
AC Camera Models to 5 models. In Y11, we continued investing 50,000,000$ in R&DFor the
changed above parameters, the company’s product quality reached 8.0*.

• UAV Drone

In Y11, we changed some parameters for UAV Drone, such as the Built-in Camera was
upgraded to Major Upgrade; Batter Pack was increased to 30 minutes and the Number of UAV
Drone Models was considerably increased to 5 models. In this year, we still kept the R&D the
amount of $50,000,000 of UAV Drone to minimize the cost of products. These decisions made
an essential change for the UAV Drone product, bringing the product quality to 8.0*

2.1.2. Marketing
• AC Camera

The strategy in year 11 is a quite considerable strategy that company E has chosen for this
product throughout years. At this stage, the company’s P/Q decreased to 8.0 in the 10th year at
4 markets and this is the highest level, and at the same time, considerably decreased the
production costs in 3 markets North America, Europe Africa and Latin America, but slightly
increased in Asia Pacific. However, for price-sensitive markets such as Asia-Pacific and Latin
America, company E will optimize costs by keeping advertising and website displays
marketing costs lower than in the two original markets, while increasing the number of multi
store chains and other retail outlets. On the other hand, after minimizing that cost, company E
 23

focuses on building websites and advertising images, which is a right move for company E
because it focuses on promoting advertising to help consumers realize that the need to use the
product is at a necessary level. However, for two dynamic and demanding markets such as
North America and Europe Africa, company E has decreased its P/Q rating and production
costs slightly, besides, increasing the number of multi store chains (71 in North America and
70 in Europe Africa) and retail stores as these are markets with high product demand,
motivating consumers to come to experience and use products. Having maintained the cost
level for chain stores, at the same time, company E has also focused on designing sales websites
and other marketing activities of the company. This has helped Company E achieve AC product
coverage not only through its stores but also through images and digital footprints on websites
and the internet.

• UAV Drone

For UAV Camera products: Company E applies the strategy of "More money, more value", but
in the 11th year, we are almost higher than the industry average compared to other rivals in
terms of market share and sales. Our company E's UAV product has a P/Q rating of 8.0, lower
than the previous year and higher than the industry average, but the price comes with quality.
When the P/Q decreased slightly, the production costs of company E in all four markets
increased and were higher than other companies consequently. Also, discounts for our online
retailers are at an acceptable level for each market (15% in North America, 14% in Europe-
Africa and 11% in both Asia-Pacific and Latin America) and are below the industry average,
which could attract more online retailers and increase sales. As a result, company E achieved
a fairly high level of demand for its products through 3rd party retailers in the area, ranking
2nd in North Africa, Europe-Africa and Asia-Pacific and 3rd in Latin America. Similar to the
AC camera product, company E also spends money on marketing activities according to the
consumption level of each certain market (spending heavily on North America and Europe
Africa markets and spending an average in the Asia-Pacific and Latin America because they
are both price sensitive markets). In its "More money, more value" strategy which company E
has applied to UAV products, it has not yet achieved the best results when the price of UAV
products in all 4 markets is very high, especially. Along with advertising costs, promotion and
warranty period has a huge gap between the first two markets and the rest up to 180 days. In
general, company E's strategy for UAV products in all 4 markets is stable and effective, besides,
it has helped company E achieve revenue and market share compared to other rivals in the area.
 24

2.1.3. Assembly and Facility Operations

• Workforce Statistics

Regarding human resources strategy, although there were still not any decisions made in
compensation package and base wage, the labour cost and productivity seemed to change
compared to the previous year.
Regarding the base wage, our company continued to keep +1% in AC and +3% in UAV
products.
As for the benefits of the workforce making the AC Camera, the incentive bonus was kept at
2.4/unit and the attendance bonus still remained at $50/worker, and our company continued not
to spend money for the fringe benefit package. AC productivity improvement training costs
still remained at $9000. This led to an increase in PAT’s productivity from 3,494
units/PAT/year to 3,633 units/PAT/year but a decrease in the labour cost from 29.62/unit to
28.86/unit compared to the previous year. In addition, the labour cost per unit was still lower
than that of the average in the industry.
 25

As for the benefits of the workforce making the UAV Drone products, Bonus incentives,
Attendance bonuses and Fringe benefit packages were still maximized. The cost of productivity
improvement training for PATs also remained at a maximum of $9,000. This also led to an
increase in PAT’s productivity from 2,168 units/PAT/year to 2,257 units/PAT/year but a
decrease in the labour cost from 46.25/unit to 45.3/unit compared to the previous year. In
addition, despite maximizing labour costs, it was lower than that of the average in the industry.
Regarding the Total Compensation, the AC Camera was $23,800/worker and the UAV side
was $38,806/worker, showing that there was still a difference in distance. The increase in
productivity led to the increase in the number of both AC and UAV Drones assembled
compared to last year.

• Assembly Facility

Our company decided to remain the same number of spaces and workstations for both AC and
UAV facilities. This helped our company not have to pay more extra costs for the number of
overtime hours.
No robotics upgrade for both products’ workstations.

2.1.4. Corporate Social Responsibility and Citizenship (CSRC)

In year 11, the corporate social responsibility and citizenship was basically the same as in year
10. Our company did not spend too much of our resources for CSRC, instead, we concentrated
on improving working conditions. Environmentally friendly materials were not the strategy in
this year because the company had no need to focus on this tactic and had not yet opted to
invest in charity activities having a large amount of investing money. Instead, the firm tried to
focus its expenses on enhancing workers' working conditions and working environment since
it is comfortable, safe, and dynamic, allowing productivity and efficiency to achieve ideal
levels. Therefore, the company E continued to involve a one-time capital investment of $3.0
million and increased administrative costs of $500k annually. Results in one-time productivity
increases of 100 units/year for camera PATs and 50 units/year for drone PATs, including
“cafeteria and on-site child care facilities for plant employees” and “safety equipment and
improved lighting/ventilation” to enhance the employee engagement with the company and
strengthen our image. Nevertheless, our company also involved one-time capital investment of
$2.5 million and increased administrative costs of $600k annually. Results in one-time
productivity increases of 100 units/year for camera PATs and 50 units/year for drone PATs.
 26

2.1.5. Finance
• In Y11, with the changes in the strategy of the finance department, the ending cash of
company E is 40849$ which was extremely high.
• Due to the increase in the price of stock and the decision on repurchasing to increase the
EPS and ROE those stocks, our company has to borrow 9870$; therefore, we accidently
increase our total liabilities to 262228$

Performance on credit rating Year 10 Year 11

Debt/ Equity percentage (D:E) 75:25 74:26

Interest coverage ratio 35.16 25.58

Current ratio 1.86 1.79

As can be seen from the table, the Debt/ Equity percentage rises to 74:26 which put the
company in the dangerous credit rating. Moreover, there was a slight decrease of the interest
coverage ratio from 35.16 to 25.58 and the current ratio is 1.79 which decrease the trust from
the bank.
 27

2.2. Result
2.2.1. Marketing performance

Our company keep the old strategy which is medium P/Q and low price for action-capture
camera and high P/Q and high price for the UAC because we realize that the UAV is design
for affluent people who do not pay much attention to the price and concentrate only on the
product quality.
 28

• AC camera

Due to the difficulties in selling products at low price, we have to add more features and
upgrade the AC camera to enhance the quality of this product. Therefore, the P/Q rating falls
from 8.2* to 8.0*.
There is a slight surge in the compensation of the PAT member from 23506$ to 23800$ to
increase the productivity.
For the PAT productivity, the company spends the maximum amount of money on training so
that they can increase their productivity to meet the high demand in the number of customers
with the figure being 3633$ in year 11 compared to 3494$ in year 10.
The cost of labor is increased due to the increase in the demand of AC camera
With the purpose of attracting more customers and increasing sales, more money is spent to
achieve this target. In detail, the marketing cost in year 11 is 41.98$ per unit sold.
Overall, these expenses are spent in order to increase the operating profit of AC cameras and
our company finally did it with a profit margin reaching 19.9%.

• UAV Drone

Because of the challenges in selling products at low price, the company has to upgrade some
features for the UAV. We aim this product at the premiere market which are North America
and Europe-Africa and our company wants to sell it at a price which is much higher than that
of AC camera.
There is a significant increase in the compensation of the PAT member from 37840$ to 38806$
to help the PAT members and increase the image rating.
For the PAT productivity, the company spends the maximum amount of money on training so
that they can increase their productivity to meet the high demand in the number of customers
with the figure being 2257$ in year 11 compared to 2168$ in year 10.
After considering the number of units assembled, we came to the decision of reducing labor
cost to maximize the profit on UAV with the number being 45.3 % per unit in year 11.
With the aim of selling to rich people, we spend much on marketing costs to find potential
customers and also to increase the current customers’ loyalty.
 29

2.2.2. Financial Performance

As can be seen from the financial statement, the operating profit we get is 233835$ which is
higher than what the company has predicted.
In the North America region, people tend to be affected by the strategy we implemented when
the figures in this market make up over half of the operating profit. However, after tax and
some other expense, the net profit is only 157286$ which contributes to the magnificent
increase in the EPS with the figure being 9.90 in year 11 compared to 7.07 in year 10.
The Dividends per share is still 0 does not mean that the investors got nothing. The increase of
EPS leads to the rise in the stock price and our shareholders will receive a higher value in their
assets.
 30

B. NEXT YEAR'S STRATEGY

I. GENERAL PLAN

Based on the transformations in the Y11 result, the strategy for each product in Y12 will be as
follows.

• AC camera

We continue targeting AC Camera's market-winning efforts in all four markets with the
strategy of “low-cost low price”. We still keep increasing the quality of products to target the
high-end consumer market while ensuring optimal production costs.

• UAV Drone

Continuing to implement the strategy of more value more money to attract large potential
markets. There will be adjustments to product functions to suit the demand better and ensure
attractive prices for customers.

II. IN-DEPTH PLAN

1. Product Design
• AC Camera: After analyzing the competitive market, our company continues to utilize the
“low cost - low price” strategy for AC Camera products. Particularly, as the product’s P/Q
will be raised, prices will also increase to be suitable for the quality but still keep the cost
low compared to the industry average and compete with other competitors.
• UAV Drone: In the 12th year, our company will remain using the “more money more
value” strategy for UAV products. We decide to manage the P/Q of the UAV to be higher
than that of the AC Camera as well as competitors to compete with them in terms of quality,
the price will also be increased to match the quality of the product.
2. Marketing
2.1.AC Camera

In the next year, for AC Camera, we decide to use a differentiation strategy. Details for each
market are as follows:

• North America: Since this is not a very price-sensitive market, with the P/Q rating 8.1*,
the price per AC camera will be $438. In order to increase sales, we invest more on
marketing in this market than in the rest. With a discount of 23% while increasing the
advertising budget up to $6350. Target at 15.3% market share.
 31

• Europe-Africa: As a similar market to North America, our company will set the price at
$435. Besides, we will promote marketing here with a discount of 22% and increase
advertising budget to increase revenue. Target at 15.1% market share.
• Asia-Pacific: We plan to set the price at $389. This is a price-sensitive market, so we are
determined to gain as much market share as possible here with very low prices. Besides,
we will increase the discount rate to 25% and the advertising budget to increase revenue.
Target at 14.6% market share.
• Latin America: Similar to Asia-Pacific with decreasing prices, we decide $348 for the
price, also with determination to set a low price and discount 22% to achieve 15.3% market
share.
2.2.UAV Drone

In the next year, for UAV Drone, we are aiming to use a “more money-more value” strategy.
Details for each market are as follows:

• North America: Since this is an area that mainly cares about product quality, we strongly
focus on the quality of UAV drones with 8.1* with a selling price of $2956 - the highest in
4 markets, besides, to boost its demand, we will spend more on advertising. Target at 17.5%
market share.
• Europe-Africa: Similar to North America, but we'll keep the price at $2940, while
increasing advertising budgets and support for retailers. Target at 18.5% market share.
• Asia-Pacific: As mentioned, this is a price-sensitive market so in the next year, we decide
to sell at $2510 to this market, while increasing the advertising budget and discount 11%
Offered to 3rd-Party Online Retailers. Target at 19.3% market share.
• Latin America: Similar to Asia-Pacific, we will keep the price at $2445 to attract more
customers, while increasing advertising budgets and support for retailers. Target at 18.8%
market share.
3. Financial strategy

In the next year, the company will continue to spend more money on research and development
of both AC cameras and UAV.

• The budget projected for these 2 products are 50,000$ in R&D each.
• Marketing budget: 1050,000$
• Compensation and facilities are predicted to cost 15000$
• The individual target of the company for the next year performance: EPS:12; ROE: 185%
 32

4. Compensation & Facilities

We could consider having an enhancement in wage and benefits if needed for a higher
rate of productivity.
More workstations will be installed depending on how the demand goes.
No robotics upgrade for both products’ workstations. We did think of doing so, but the
financial state is irrelevant for such action.

5. Corporate Social Responsibility and Citizenship (CSRC)

In year 12, the corporate social responsibility and citizenship CSRC will remain stable as in
year 11. Company E will not spend too much of our resources on CSRC, instead, our company
will focus on improved working conditions and corporate facilities because using
environmentally friendly materials is not the necessity for E company at this stage. Besides,
the firm opted to focus more money on enhancing workers' working conditions and working
environment since it is comfortable, safe, and dynamic, allowing productivity and efficiency
to achieve ideal levels. Therefore, company E will continue to involve a one-time capital
investment of $3.0 million and increased administrative costs of $500k annually. Results in
one-time productivity increases of 100 units/year for camera PATs and 50 units/year for drone
PATs. Additionally, company E also involves a one-time capital investment of $2.5 million
and increased administrative costs of $600k annually. This will lead to one-time productivity
increases of 100 units/year for camera PATs and 50 units/year for drone PATs.