Four year strategic plan for Erie Capsim Company Essay

The four year strategical image exit focus on key drivers of the industry, factors determining future of the familiarity, industry attractiveness, and its competitive environment. Each dent contains detailed subsections which clearly defines the strategic plan. The plan uses 2009 data and our four year plan runs up to 2013.1.1 Driving ForcesIn this industry there ar many driving forces. Our top management uses the concept of driving forces to reach consensus on what strategic area represents the industries current driving force.1.1.1 Research and DevelopmentOur company will be introducing a new High shutdown product every year. In addition we will reposition our performance and size segment products into our initial targeted sections. This will enable a stream or products declinationd up along the High End, traditional, and Low end sections. In addition we will allow present traditional section products to become a Low End section product so as to create room for segment dri ft. The company will later introduce a new product to the High End and will finally have four products each in the Low, Traditional, and High end sections during those four days. This way the company will present to clients products in line with their perfect procedure for age, reli expertness, and positioning. Also the company endeavors to sustain its existing product line, ensure presence in each section, and strive to sustain its products in the side by side(p) four years in spite high levels of automation.1.1.2 MarketingMarketing is another main driving force. At first our company will start out to keep pace with the accessibility and awareness of immediate competitors products. Ideally we will be revisiting our status every year for the adjacent four years to determine whether promotion and sales budgets should be sized or if the company will continue matching that of competitors. Generally our company will brook products at reduced prices. Also for these four years our com pany is planning to spend aggressively in sales and promotion in targeted sections Low, Traditional, and High sections. In this light every client will have known our superb designs for the next four years. Basically, we are planning simplify logistics involved in identifying products by customers. After defining the companys cost leadership position, we will reconsider the companys situation to explore alternatives to enhance accessibility and awareness.1.1.3 productionSignificantly our company will significantly increase automation levels on all products in the next four years. Since automation limits the companys ability to reposition its products in line with R&D, we will edge our automation process in the Low and Traditional sections in the next two years and then High end section during the last two years. Our company will ensure capacity building to meet the generated demand. In the first one-half we will reposition our brands. However, in the last half we will evaluate way s of increasing in automation levels to enhance margins as well as repositioning products and sustaining sections as they traverse the perceptual map.1.1.4 FinanceThe nature of our industry allows it to daltogether funds from a wide source. During the first half the company will finance its investments mainly through bond issues supplementing with stock offers following an as needed basis. For last half, the company will develop a divided insurance policy and start to retire stock. The company is not adverse to leverage and expectation is that we will sustain debt/equity ratio at 2.0-3.0.1.2 Future key triumph factorsFactors for success in our company include1.2.1 ConcentrationOur company will concentrate on Low, Traditional, and High end sections. This will keep production costs, raw material costs, and R&D costs to a minimum. Also company product lifecycle concentration will enable us to reap sales for the next four years on each of the four new products to be introduced into Hi gh end section.1.2.2 Brand realisation and awarenessThe company will obligate presence in every section. We will endeavor to ensure a competitive edge by differentiating our products. This will be done through glorious design, easy accessibility, and high awareness during first half. In the other half, the company will initiate a competent R&D that ensures fresh and provoke designs. growths will be in line with the market needs, presenting enhanced performance and size.1.3 Attractiveness of industry and competitive environment1.3.1 Factors making the industry attractiveseveral(prenominal) factors make our company to be attractive. These are factors that will determine how far our company can remain still. These include Reliable products will ensure products which are reliable to mainstream clients and brands that offer value. Premium products our company offers good products and brands that will stand the test of time. Low price the company offers products at reduced prices . Its brands offer secure value. Easy technology our products are reliable even to low technology customers1.3.2 factors making the industry unattractive Funding the market is unpredictable and there acquire enough financial support is a problem Extensive research product sustainability requires an extensive research. This adds to cost by way of experts and professionals.1.3.3 special industry issues/problems Product presence our company plans to maintain a competitive advantage by ensuring presence in every section. Unrelenting focus concentration ensures brand recognition which leads to unique opportunity over competitors. Substitutes the company is likely to suffer incase substitutes flood market, particularly during last half. New entrants during the first two years the company will enjoy monopoly but in last two years entrants are likely to enter the market.1.3.4 Profit outlookThe company currently is enjoying a profit margin of 20%. This strategic plan aims to grow the prof it by additional 10% for first two years and another 15% in the last two years.