Decision Sheet

Protagonist: Greg Memo, the consumer notebook design team leader at Compaq Computer
Corporation's Consumer Division.

Case Facts:
1. Compaq's Consumer Division struggles to sell notebooks in the consumer market, with
only a 3% market share compared to Toshiba's 60%.
2. A new notebook, code-named Shark, is explicitly designed for the consumer market,
focusing on size, weight, battery life, and retail-friendly features.
3. Focus groups were conducted as part of the design process despite initial doubts about
their necessity.
Issues:
1. Low market share: Compaq's market share in the consumer notebook market is
significantly lower than its competitors.
2. Successful launch: Ensuring the successful launch of the new notebook, Shark, to capture
back-to-school demand and increase market share.
3. Usefulness of focus groups: Assessing the relevance and impact of insights gathered from
the focus groups on decision-making and product development.
Problem Statements:
1. Considering its current position and competitive landscape, How can Compaq increase its
market share in the consumer notebook market?
2. What strategies should be adopted to ensure a successful launch of the new notebook,
Shark, and maximize market penetration?
3. To what extent should the insights obtained from the focus groups influence the decision-
making process and product development efforts?
Criteria:
1. Consumer preferences and reactions to form factors.
2. Market demand and potential sales.
3. Brand loyalty and perception.
4. Integration of key features (e.g., CD-ROM, battery life).
5. Launch Effectiveness and Timing: Assess the effectiveness of the Shark Notebook launch
strategy and its alignment with market demand and seasonal trends.
6. Customer Feedback and Preferences: Incorporate customer insights and preferences
gathered from the focus groups to tailor marketing messages and product features.
7. Competitive Positioning: Analyse the competitive landscape and identify opportunities to
differentiate Compaq's offerings and capture consumer interest.

Hypotheses (Null and Alternative):

1. Focus Groups:
- Null Hypothesis: Conducting focus groups will not significantly impact the success of the
Shark Notebook launch.
- Alternative Hypothesis: Conducting focus groups will provide valuable insights to
positively impact the Shark Notebook launch.
2. Market Share Increase:
- Null Hypothesis: The Shark Notebook launch will not significantly increase Compaq's
market share in the consumer notebook market.
- Alternative Hypothesis: The Shark Notebook launch will significantly increase Compaq's
market share in the consumer notebook market.
Alternatives:
1. Proceed with Form Factor E':
- Justification: Offers integrated solution preferred by consumers, meets demand for CD-
ROM capability, and aligns with brand perception of completeness and quality.
2. Implementation of Targeted Marketing Campaigns:
- Justification: Develop multi-channel marketing initiatives targeting key consumer
segments, leveraging insights from focus groups to craft compelling messages and
promotions.
3. Establishment of Strategic Retail Partnerships:
- Justification: Collaborate with retail partners to secure prominent shelf space, conduct
joint marketing efforts, and optimize product distribution channels for maximum reach and
impact.
4. Investment in Customer Service Excellence:
- Justification: Allocate resources towards enhancing customer support infrastructure,
training programs, and post-purchase services to deliver exceptional customer experiences
and build long-term brand loyalty.
Solutions:
1. Integration of Focus Group Insights: Utilize qualitative data from focus groups to inform
product design, feature prioritization, and pricing strategies, ensuring alignment with
consumer needs and preferences.
2. Implementation of Targeted Marketing Campaigns: Develop multi-channel marketing
initiatives targeting key consumer segments, leveraging insights from focus groups to craft
compelling messages and promotions.
3. Establishment of Strategic Retail Partnerships: Collaborate with retail partners to secure
prominent shelf space, conduct joint marketing efforts, and optimize product distribution
channels for maximum reach and impact.
4. Investment in Customer Service Excellence: Allocate resources towards enhancing
customer support infrastructure, training programs, and post-purchase services to deliver
exceptional customer experiences and build long-term brand loyalty.