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Assignment 1

From my assumption, Whatsit industry refers to automobile industry which has 5 companies in the
market.

Table 1. The global automobile industry sales from year 2004-2009

Year Total Industry Sales Growth %
2004 4190
2005 4550 9%
2006 4770 5%
2007 5210 9%
2008 5960 14%
2009 6600 11%

ACAG 10%

Graph 1. Global Automobile Sales

The automobile industry has been increased significantly from 4190 to 6600 which the industry’s
growth rate has increased approximately 37% over 2004-09, and the affected by the global economic
downturn, it slightly decreased in value in 2009.

Graph 2. Comparing companies’ revenues from year 2004-2009

Growth
Company 2004 2005 2006 2007 2008 2009 %
Alpha 1400 1500 1590 1640 1700 1750 20%
Beta 1450 1550 1630 1670 1770 1860 22%
Gamma 400 500 630 840 1380 1850 78%
Delta 800 850 750 850 880 860 8%
Zeta 140 150 170 210 230 280 50%

Comparing the average sales and profits for all market. Gamma Company has significantly increased in sales from 840-1850 from 2007-2009. The average profit in the market is 152. Delta and Zeta. According to the graph above.Beta Company has been the leading player based on revenues in the market industry from 2004-2007. Alpha. Gamma. Zeta and Delta. Alpha (20%) Graph 3. . In the year 2009. 2004 2005 2006 2007 2008 2009 Average Sales 838 910 954 1042 1192 1320 Average Profit 152 142 77 133 181 209 Beta Company has the highest profit from 2006-2009 and followed by Gamma. This can be seen that Gamma has used the growth strategy in terms of R&D and also invested heavily in new technology to produce the new model of cars from 2005-2007. beta (22%). However. followed by Zata (50%). this demonstrates that Beta and Alpha have increased the profit more than the market. Comparing the companies’ profit from year 2004-2009 Table. Gamma had the lowest profit in 2008 and then significantly increased. this leads Gamma has the highest growth rate at 78% from year 04-09. Gamma was ranked as the second largest profit after Beta. followed Alpha.

These could have been the results from investing heavily on R&D and technologies into the company. its profit margin tended to significantly decreased from year 2004 to 2006 and rapidly increased onward till year 2009. Graph 5. Comparing companies’ market share from year 2004-2009 Companies 2004 2005 2006 2007 2008 2009 Alpha 33 33 33 31 29 27 Beta 35 34 34 32 30 28 Gamma 10 11 13 16 23 28 Delta 19 19 16 16 15 13 . Comparing the companies’ profit margin from year 2004-2009 2004 2005 2006 2007 2008 2009 Gamma 20 -7 -29 -4 12 12 Zeta 44 40 38 36 35 34 The table and graph shows the companies profit margin.Graph 4. it can be seen that Zeta has the highest profit margin comparing with every companies. For Gamma company.

after putting heavy investment in R&D and technologies.15 Profits in the year 2010: 1043 * 1. Zata has constant market share as the lowest which is approximately 3-4%. For Gamma. As comparing all the companies. Zeta 3 3 3 4 4 4 In term of companies market share.1 Sales in the year 2010 : 6600 * 1. but the price per car can be more expensive than other companies.1 = 7260 Growth of the total industry Profits in the year 2009 : 221 + 413 + 223 + 90 + 96 = 1043 2008 : 220 + 335 + 170 + 100 + 80 = 905 Average growth : 1043/905 = 1. the graph illustrates that Beta has the largest market share ranking . the future trend for sales and profits in year 2010 will be increased by using data in year 2009. followed by Alpha. It can be applies that Zeta company is producing luxury automobile because the total car selling is relative less than the largest automobile companies like Beta and Alpha. it assisted to improve significantly in revenues and profit margin and also can capture more market share from other competitors. From my opinion. Growth of the total industry Sales in the year 2009 : 1750 + 1860 + 1850 + 860 + 280 = 6600 2008 : 1700 + 1770 + 1380 + 880 + 230 = 5960 Average growth : 6600/5960 = 1. However.15 = 1200 . it shows that Zeta has the lowest market share with the highest profit margin.