Strategic Review the Performance of Capstone Project

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However, it is worth considering that the previous management's performance with this product was so poor that virtually any price point in our range would have dramatically outperformed the previous management's performance. A drop to $150 would have been a good starting point in 2006, as it would have given us a better idea of the price elasticity of demand for this product. With this knowledge, a trend line could have been extrapolated that would allow us to determine the optimal price point, resulting in another price change for the subsequent years.

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R&D expenditures are not viewed as essential to this product, though maintaining the 33% level would have allowed the product to see some feature improvement over the years, given it a competitive advantage over other low-end handheld devices.

The proposed four-year strategy therefore can be summarized as follows:

Year by Year Decisions: Pricing & R&D Allocations

PRODUCT

DECISION

2006

2007

2008

2009

X5

Price

$250

$250

$250

$250

R&D %

0%

0%

0%

0%

Discontinue?

NO

NO

NO

YES

X6

Price

$450

$450

$450

$450

R&D %

67%

67%

67%

67%.....

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"Strategic Review The Performance Of", 20 July 2010, Accessed.20 May. 2025,
https://www.aceyourpaper.com/essays/strategic-review-performance-9595