UEH UNIVERSITY 

COLLEGE OF BUSINESS 
FACULTY OF INTERNATIONAL BUSINESS – MARKETING

🙟🞜🙝

COMPANY A – INDUSTRY 6 
REPORT YEAR 6 - PRACTISE 

Instructor: Hà Quang An 

Class: 23G19BUS50326301 
Students_ID: 
Trần Thu Phương_31233570038 
Mai Tuyet Ngan_31201023249 
Nguyen Thi Thao Nhien_31201021729 
Kieu Tan Nguyen_31201023659
TABLE OF CONTENTS 
I. Industry overview report
1. AC Camera
2. UAV Drone
3. Companies in the industry
II. Report on the company's activities for year 6 
1. Company strategy overview
Our company chooses the top-of-the-line quality and performance strategy, focusing on
the high-end market segment. We realize that North America and Europe-Africa markets
are willing to pay to adopt advanced and premium technologies. Therefore, we choose
the top-of-the-line quality and performance strategy with outstanding technological
improvements to meet the needs of this high-end customer segment.
2. Compensation and facilities
2.1 AC Camera
In year 6, the HR department decided to increase the total compensation with $25,304
and maintain the base wage per PAT member at 1%. Besides, because of our limitation in
finance, our company did not change much compared to year 5. 
From the table above, our productivity is 3,094 units per PAT. This figure indicates a
redundant quantity in the production process since the consumption result is below
assembly capability both without overtime and at maximum overtime. Moreover, the
Expected ACC Unit Shortfall equals 0 and we don't expand our company's volume. 
Although we have installed the Workstation Table, our company still has the lowest
workstation spaces and installed workstation, respectively 300 and 280.
2.2 UAV Drone
About the compensation and facilities decisions that companies make in year 6, the same
as for AC cameras, the HR department decided to slightly increase the total compensation
and maintain this feature with $25,000. Also, we have remained the base wage at 1%
similar to year 5.
Our productivity has increased 250  units per PAT ($1,650 units) in year 6 compared to
year 5 ($1,500 units). Furthermore, the total drone production cost in year 6 ($145.109) is
much higher than the previous year due to the adjusting of product attributes to increase
the P/Q rating of the product (from 4* to 5.0*). We did not expand any workstation
spaces or install workstation. In addition, we also did not invest in the robotics upgrade in
this year because the Robotics Upgrade requires a huge amount of money for initial
investment and our current finance situation did not allow us to do so.
3. Product design
3.1. AC Camera

Our company decided to once again raise the P/Q rating of AC Camera. Although
not as much money was put into R&D in comparison to the Year 6 trial, we managed to
increase the rating to 5 stars. Instead, we invested in Camera Housing, Editing/Sharing
Capabilities, Included Accessories, $9, $10, $11 per camera respectively. At the same
time, Image Sensor Size went up to 13mm. LCD Display was updated to 1230k pixels.
Number of Photo Models was 8 modes for video and 3 modes for still. Extra features also
got increased to 5 features. And the number of AC Camera Models was limited to 4.
 This amounted to a total cost of components and features of $86,164 or $112.81
per unit camera. Meanwhile, total camera production/assembly cost sat at $156,531 or
roughly $204.94 per unit.
3.2. UAV Drone
We continue the strategy of increasing the P/Q rating of drones as mentioned and
also spend as much money as investing in R&D. As a result, our cost is become very
high, reaching $1,233.49 to make a drone.
However, in the beginning, we would retain the high investment for R&D and increase of
P/Q rating, because the UAV drone could be seen as a high-end product, so the high P/Q
rating could help increase the revenue.
4. Marketing
4.1. AC Camera
For Year 6 official, we significantly lowered our selling price for the AC Camera
despite a higher P/Q rating when compared to Year 6 Trial. This time we decided to sell
our AC Cameras at $350, $345,$250, $245 respectively  across all 4 markets. As we
aimed for the top of the line quality and performance strategy, we tried to standardize our
marketing focus on North America and Europe- Africa. Therefore, sales promotions were
different for the markers. The promotional campaigns lasted 1 week with a 10% discount.
Another aspect that changed the time of different markets was the warranty period.
Because of the high rating of 5 stars, we felt that it was justified to set the duration of
warranty to 180 days for this particular product, i.e. AC Camera.
 We also tried to set the support expenditures per unit sold at the main markets of
North America and Europe Africa higher than Asia Pacific and Latin America at around
$7 and $5. However, North America was undoubtedly the most heavily invested with
retailer support budget racking up to $2,500, Advertising Budget at another $2,500, and
Website Displays/Info at $1,500.

4.2. UAV Drone

This year, we do not retain the high price as we did, instead, we level up the P/Q
rating while remaining the price at $1,300 ~ $1,250 in North America and Europe-Africa,
and $1,050 in both Latin America and Asia Pacific as these two markets are price
sensitive.

However, we keep the discount for third parties at 15% for all markets, and this
makes our revenue become lower than other rivals. On the other hand, we now have high
market shares in Asia-Pacific and Latin America markets, and retain the same portion of
that in the others. This year also, we invested a lot of money in activities involving
marketing and supporting third parties, these things are also the reasons to help us not to
lose the market shares. However, it also brought some negative results and affected the
company’s finances. And the solving directions for this problem would be mentioned in
the strategy for year 7 section.

5. Report on Finance and Cash Flow

Our earnings per share in year 6 increased dramatically from $0.75 to $1.46. The
operating profit can cover the interest income expense (10,300). Our company, therefore,
has incurred a positive net profit.

Our return on equity was 22.7% with $303.458 million of total assets, $160.748 million
dollars of total liabilities, and $142.710 of total shareholder equity.
Most of the rivals in the industry chase the strategy of high P/Q rating with low cost,
which is not in line with our company's expectations. Therefore, AC camera net sales
revenues are above average with 236.427 and the opposite site is true with UAV Drone at
182.486, respectively. This indicates that the marketing of both products is really
effective, which causes our sales of both products to be as high as we expected.
We decided to pay 0.05 dividends in year 6.Our Debt/Equity is 53:47, which has quite the
same proportion of debt compared to some companies. Besides, our net profit margin is
7.0% which is under average and shows that our operations in year 6 are not as good as
others
Our cash on hand was $21.906 million which is quite smaller above the industry average.
We can consider that it might be safe for us to borrow many of the new loans. Due to our
quite good  performance in the financial statement, we may be allowed to borrow new
loan categories with low-interest rates. 
6. Corporate Social Responsibility and Citizenship (CSRC)

In year 6, we invested money in one field of Improved Working Conditions in order to

help enhance the company productivity in AC camera production and this also boosted
the Image Rating Points Generated of our firm. Besides, we also invested in the
Institution of a Supplier Code of Conduct and Compliance Monitoring of Suppliers to
promote employment practice and safe working conditions.
III. Competitive Intelligence Reports
1. AC Camera
1.1. North America:
  P/Q rating: In the Y6, the average P/Q rating of the entire market is 4.7*, with
company E leading with 5.5* and company C lasting with 4.3*.

The company with the most improvement in P/Q rating was E, increasing 1.5*; next are
A and F, which increased 0.9*; B and D increased 0.7*; G increased 0.5*; C increased
0.4*; and H increased 0.3*.

 Price: In the Y6, the average price of an AC Camera on the market is $281 for the
product (equivalent to $59,79 for 1*). Although company A sells at the highest
price of $350 and the second lowest price of $300, if the price is exchanged for the
equivalent of 1*, the order of the price from high to low will be:

A($71,42)->B($63,8)->F($61,22)->G($57,78)->C($56,55)->H($55,81)->E($54,55)-
>D($52,98). Thus, company D has the cheapest selling price, that is, goods of high
quality, but the price is lower than the market, while company A is quite unfavorable if
considered in terms of price. Company A is the company with the largest price volatility,
up $125. The remaining companies all increased; the price changes for the companies
were $75( B, E, and F), $35( G), $24( C, D), and $15 (H).

 Number of models: Company A reduced one model, while companies B, D, E, F,

and H retained the same number of models compared to Y6. Company H’s
strategy is pretty good because it is following a low-price strategy to win market
share.
 Retail outlets: Retail channels remain unchanged according to Y5.
 Retailer Support: Compared to the Y5 decision, companies have changed, but not
much; focus is mostly on company A and not on company D.
 Advertising budget: Although company A has the highest average selling price, it
has not invested more in Marketing (unchanged compared to Y5). Together with
company A, companies B, D, E, and H did not increase their marketing budgets,
 while companies C and F invested more in marketing (up $200,000 and $300,000,
respectively), and G cut their marketing budget ($200,000).
 Website display: Most companies keep the same level of investment as Y5 (except
for two G and H companies). G dropped $100,000, and H raised $250,000.
 Sales promotions: While companies A, B, C, E, F, and H keep the same number of
weeks down to 1, company D increases to 4 weeks and company G to 2 weeks.
 Warranty Period: Most companies have increased the number of warranty days.
Company G increases the number of warranty days to 180 days, A and B (120
days), D, E, and F( 90 days), respectively, while Company C and H retain the
same number of guarantee days compared to Y5.

1.2. Europe- Africa

 P/Q rating: similar to North America

 Price: In Y6, the average price of an AC Camera on the market is $275 for
the product (equivalent to $58,51 for 1*). Although company A sells at the
highest price of $345 and the second lowest price at $300, if the price is
exchanged for the equivalent of 1*, then the order of the sale price from
high to low will be A($70,41)->F($61,22)->B($58,51)->G($57,78)-
>C($56,59)->E($54,55)->D($52,97)->H($52,33). Thus, company H has the
cheapest, highest-quality goods, but the price is lower than the general
market, and company A  is quite unfavorable if considered in terms of
price. Company A was the company with the largest price volatility, up
$120. The remaining companies all increased (except the company H does
not increase); the price changes for the companies were $75( E,F), $50( B),
$35( G), $24( C,D)
 Number of models: similar to the North American market.
 Retail outlet: similar to the North American market.
 Retailer Support: Compared to the Y5 decision, companies have changed,
but not much; focus is mostly on company A  and not on company D.
 Advertising budget: Although company A has the highest average selling
price, it has not invested more in Marketing (unchanged compared to Y5).
Together with company A, companies B, D, E did not increase their
marketing budgets, while companies C , F, H invested more in marketing
(up $200,000, $600,000, and $900,000, respectively), and G cut their
marketing budget ($100,000).
 Website display: Most companies keep the same level of investment as Y5
(except for  G  company). G dropped $100,000.
 Sales promotions: While companies A, B, C, E, F, and H keep the same
number of weeks down to 1, company D increases to 3 weeks and company
G to 2 weeks.
 Warranty Period: Most companies have increased the number of warranty
days. Companies A,G increase the number of warranty days to 180 days, B
(120 days), D, E, and F( 90 days), while Companies C and H retain the
same number of guarantee days compared to Y5.

1.3. Asia-Pacific

- P/Q rating: similar to North America

- Price: In Y6, the average price of an AC Camera on the market is $246 for
the product (equivalent to $52,34 for 1*). Although company E sells at the
highest price of $300 and the second lowest price is f at $255, if the price is
exchanged for the equivalent of 1*, then the order of the sale price from
high to low will be : E( $54,55)->G( $55,55)->H( $52,33)->D( $52,12)-
>F($52,04)->C( $51,14)->A( $51,02)->B( $46,81). Thus, company B has
the cheapest, highest-quality goods, but the price is lower than the general
market, and company E  is quite unfavorable if considered in terms of price.
 Company E was the company with the largest price volatility, up $75. The
remaining companies all increased (except C,H,B does not increase)
- Number of models: similar to the North American market.
- Retail outlet: similar to the North American market.
- Retailer Support: Compared to the Y5 decision, companies have changed,
but not much; focus is mostly on company E  and not on B,D.
- Advertising budget: Although company E has the highest average selling
price, it has not invested more in Marketing (unchanged compared to Y5).
Together with company E, companies A,B, D,F did not increase their
marketing budgets, while companies C , G, H invested more in marketing
(all up $100,000).
- Website display: Most companies keep the same level of investment as Y5
(except for  E,G  companies). E dropped $100,000, G raised $100,000.
- Sales promotions: While companies A, C, E, F, and H keep the same
number of weeks down to 1, company B increases to 3 weeks and D,G to 2
weeks.
- Warranty Period: Most companies have increased the number of warranty
days. Company G increases the number of warranty days to 180 days, B, D,
E, and F( 90 days), while Companies A,C and H retain the same number of
guarantee days compared to Y5.

1.4. Latin America

- P/Q rating: similar to North America

- Price: In Y6, the average price of an AC Camera on the market is $245 for
the product (equivalent to $52,13 for 1*). Although company E sells at the
highest price of $300 and the second lowest price is G at $250, if the price
is exchanged for the equivalent of 1*, then the order of the sale price from
 high to low will be: G(55,55)->E(54,55)->D(52,98)->H(52,32)->F(52,04)-
>C(51,13)->A(50)->B(44,68). Thus, company B has the cheapest, highest-
quality goods, but the price is lower than the general market, and company
G  is quite unfavorable if considered in terms of price. Company G was the
company with the largest price volatility, up $25. The remaining companies
all increased (except C,H does not increase) and the price is reduced in
Company B, down $15.

                - Number of models: similar to the North American market.

- Retail outlet: similar to the North American market.

- Retailer Support: Compared to the Y5 decision, companies have changed,
but not much; focus is mostly on company E  and not on A.
- Advertising budget: Although company E has the highest average selling
price, it has not invested more in Marketing (unchanged compared to Y5).
Together with company E, companies A,B, D,F,H did not increase their
marketing budgets, while companies C , G,  invested more in marketing (all
up $150,000).
- Website display: Most companies keep the same level of investment as Y5
(except for  G  company ). G dropped $200,000.
- Sales promotions: While companies A, C, D, E, F, and H keep the same
number of weeks down to 1, company B increases to 3 weeks and G to 2
weeks.
- Warranty Period: Most companies have increased the number of warranty
days, but not much. Company G increases the number of warranty days to
180 days, B, E, and F( 90 days), while Companies A,C,D and H retain the
same number of guarantee days compared to Y5.

2. UAV Drone 
Before coming to the main content of this part, there is one thing that needs to be noted in the four
markets, the P/Q rating of most company remains below 5.0*. The average rating of drones in the market
in year 6 rose to 4.7* from year 5 (4.0*). Meanwhile, almost companies improved their product becomes
better and the P/Q rating reached nearly 5.0*. But Company A had the lowest P/Q rating among 8
companies. From this point of view, our team could make a prediction that, in the next year, the
companies should keep the P/Q rating going up but at a faster speed. 
2.1 North America and Europe-Africa 
 North America 
  Europe - Africa 

In this year, the price of drones has a slightly increased fluctuation although it does not as much as in year
5. The average price in both markets goes up from $1100 to around $1381. It is noticeable that company
F has a significant change in increasing price, it increases from $1100 to $1700 in North America and
increases by $550 in Europe - Africa. On the contrary, the discount for the third-party retailers in these
markets witnessed a steady decrease from around 15% in year 5 to 13,3% in year 6.   Almost all
companies' discounts are set at below 15%, therein, Company F and Company E are 10% and 11%
respectively. 
The investment in website display is the next factor needed to discuss. This sector is not invested as much
as in the year 5, decreasing by $27,000 in North America and $32,000 in Europe-Africa in the average of
the market. However, the investment in search engine advertising experienced an increase slightly in the
average of companies in 2 markets. Meanwhile, company H spent the highest money on advertising, up to
$2000 in the North America and Europe-  Africa  market
The last factor is the warranty period offered by the companies. It is reach around 109 days in year 6 in
North America and around 101 days in Europe-Africa
2.2 Asia - Pacific and Latin America
 Asia - Pacific 
  Latin America

These two markets’ results are out of our expectations. 

The first factor is the price of drones in these markets is much higher than we expected with almost all
companies setting the different price, company E and company G sell a drove with around $1500 and
$1600 to 2 markets in comparison with the price of company B are only $950 to Latin America market
and $1000 to Asia-Pacific market. Besides, the discount level for the third-party retailers is cut down
from 15% in year 5 to 13,9% in both markets. 
Advertising and website displays efforts were also significantly lower than that of the other two markets.
only $913,000 for web display and $688,000 for advertising in the Asia-Pacific market, and $663 000 and
$438000 was spent on web display and advertising respectively in Latin America. 
The last factor would be mentioned in this part is the warranty period. In these markets, warranty period
averaged 141 days, higher than the previous year at 60 days. Most companies were around this average,
only company G offered a 180-day warranty and company E offered a year round warranty.
About market share shifts, the gainers include B, and F, while the losers include E. B had the most market
share at around 18% at 2 markets. 
IV. Strategy plan for year 7 
1. R&D
2. Marketing 
2.1 AC Camera
2.2 UAV Drone