Lucy Hesse

Jeremy Linn
Shea Kirsop
Lucinda Sparks
Trent Speaker
July 15, 2013

DIGBY CO.

DIGBY

I. Sensor Industry Overview

II. Strategy
a. Goals and Expectations

III.
IV.
V.
VI.

Competitive Analysis
What We Could Improve
What We Did Right
Overall Performance & Limitations

DIGBY CO.

Agenda

 Six companies (Identical Competitors)

Andrews
Baldwin
Chester
Digby
Erie
Ferris
Sensors are sold to multiple clients across
various industries

DIGBY CO.

Sensor Industry Overview

Broad Differentiator:
Maintaining a presence in every market
Distinguishing products with excellent design,
high awareness and easy accessibility
R&D keeps designs fresh and exciting
Products keep pace with the market
Improved size and performance
Prices will be above average
Capacity will be expanded with higher demand

DIGBY CO.

The Digby Strategy

Mission Statement:
Premium products for the industry: Our brands
withstand the test of time. Our stakeholders are
customers, stockholders, management and
employees.

DIGBY CO.

Goals & Expectations

Conservative approach to R&D

TS

 Key Competitor Moves

Chester Dropped Traditional and Low End
Products
Baldwin Dropped Performance Product
Aggressiveness
Competitor Positioning
Promotion Budget
Customer Accessibility

DIGBY CO.

Competitive Analysis

26%

Market Percentage

24%
22%

Andrews

20%

Baldwin

18%

Chester

16%

Digby

14%

Erie
Ferris

12%
10%

DIGBY CO.

Market Share

 Increasing the market share against

competitors
Utilization of the industry conditions report
Focused on top competitors Erie and Chester

DIGBY CO.

Competitive Analysis

LH

 Poorly developed low

end product (Dell), near
end
Making changes late in
the simulation
Dot: constantly altered
and marketed but never
gained any traction

DIGBY CO.

Where We Could Improve:

Research & Development

 Didnt market enough with sales and promo

budgets early in the simulation
Sales forecasting suffered
In Year 8:
Dot production, 2300.
Sales Budget=$0.

DIGBY CO.

Where We Could Improve:

Marketing

 Didnt anticipate increase in demand in Year 5

Late to react to other teams decisions
Were hesitant to produce over capacity

DIGBY CO.

Where We Could Improve:

Forecasting/Production

 Changed Accounts Payable in Year 6 to 60

Days
Didnt Pay Off Bonds in Later Rounds

DIGBY CO.

Where We Could Improve:

Finance

LS

 Financial Structure
Capacity Utilization
Positioning (Rounds 1-5)
High End Product (Dixie)

DIGBY CO.

Strengths

Goal: 1.8-2.2 leverage

DIGBY CO.

Financial Structure

DIGBY CO.

Capacity Utilization

DIGBY CO.

Positioning

 Best performing product throughout the past

8 years

DIGBY CO.

High End Product: Dixie

JL

R&D (positioning: size,

performance, mtbf)
Shift products early to
better utilize their ideal
spots
Better fit the needs of the
customer buying criteria
Introduce a new product
early

DIGBY CO.

Future Strategies &

Recommendations

DIGBY CO.

Positioning

DIGBY CO.

Future Strategies &

Recommendations
Marketing
Price products more competitively
Increase sales and promo budgets to achieve
higher awareness and accessibility early
Customer Awareness
Daze

61
61
63
71
73
Year 1

74
74
76
86
87
Year 2

Dell

Dixie

Dot

Customer Accessibility
Dune

Daze

93

100

100

100

100

100

83
89

92

97

97

99

100

96

100

100

100

100

96

100

100

100

100

100

98

100

100

100

100

100

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

45
37
49
43
61
Year 1

43
39
46
48
57
Year 2

Dell

50
43
52
58
59
Year 3

Dixie

57
51
60
67
66
Year 4

Dot

69
65
65
76

69
65
65
76

71

71

Year 5 Year 6

Dune
84

87

82

86

76

78

74
78

62
80

Year 7

Year 8

Marketing Continued
Forecast more
accurately
Prevent stock outs

DIGBY CO.

Future Strategies &

Recommendations
Product Stock Outs
Number of product stock outs
3

% of product stock outs

3

1
60%

60%

60%

60%

40%
20%

Year 1

20%

Year 2

Year 3

Year 4

Year 5

Year 6

20%

Year 7

Year 8

Production
Enhance production schedule through a more
accurate sales forecast in marketing
Balance 2nd shift production with buying capacity
Be less aggressive with automation
Account for change in R&D when creating
production schedules to avoid stock out
Keep A/P at 30 days

DIGBY CO.

Future Strategies &

Recommendations

Finance
Continue to max out long term debt
Change stock price by issuing and retiring
stock
Issue dividends after Year 6
Continue strong leverage of 1.8 - 2.2

DIGBY CO.

Future Strategies &

Recommendations

DIGBY CO.

What questions can

Team Digby answer for you?