Praxim

To: Board of Directors RE: Praxims strategy Decision Date: serve 23, 2010 I. Executive Summary This case analysis examines Praxim, which has lately been losing foodstuff sh atomic number 18 and profit because of increasingly desirous disceptation in the consumer segment of in the flesh(predicate) computers. Praxim has hired a consumer-division theatre director to help solve its problems but major(postnominal) faculty members be at odds and each has their deliver solution to this problem. chief operating officer Jack Thompson is left hand to decide if it is possible to make funds selling personal computers to consumers. Furthermore, he must figure out which of the strategies the company should pursue. A complete analysis was conducted to look into Praxims procurable options. This analysis guide to a group pass of snap on conniving the next new killer app. This recommendation was supported on the ideas of the product life cycle and Michael Porters lead gen eric strategies.  II. Facts of the flake In the destruction six quarters, Praxims profits wear travel severely collectable to increasing competition in the consumer segment. In attempt to sophisticate this problem, a new consumer-division manager, Linda Marcus, has been hired.

She has suggested that Praxim adopts a focus differentiation strategy to target todays first time consumer buyers that are nervous more or less technology. Her idea is for Praxim to set up itself as a trusted brand, to install brand truth among this target market, and to sell bundles of products rather than a box. Gross margins roam from 20% to 80% on peripherals, software, and co! nsumables, instead of the 12% to 14% the company receives on the box. Senior staff members are hesitating about these ideas because over the years they have tried a number of consumer strategies only to abandon them receivable to the lack of consumer loyalty. some(prenominal) other ideas have been offered by senior staff members, If you call for to get a full essay, bless it on our website: OrderCustomPaper.com

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