16 Foundation® Computer Strategies - 16.6 Ferris - Niche Differentiation

16.6 Ferris - Niche Differentiation

The Ferris computer team will adopt a Niche Differentiation strategy that focuses upon on the High Tech Segment. Competitive advantage is gained by distinguishing products with an excellent design, high awareness, easy accessibility, and new products. R&D competency is developed to keep designs fresh and exciting. Products will keep pace with the market, offering improved size and performance. Prices are above average. Capacity is expanded as higher demand is generated.

Vision Statement

Premium products for technology oriented customers: our brands define the cutting edge. Our primary stakeholders are customers, stockholders, management, and employees.

Research and Development (R & D)

We will have multiple product lines in the High Tech Segment. Our goal is to offer technology oriented customers products that match their ideal criteria for positioning, age, and reliability.

Marketing

Our Company will spend aggressively in promotion and sales in the High Tech segment. We want every customer to know about our superb designs, and we want to make our products easy for customers to find. We will price at a premium.

Production

We will grow capacity to meet the demand that we generate, avoiding second shift/overtime when possible. After our products are well positioned, we will investigate modest increases in automation levels to improve margins, but never at the expense of our ability to reposition products and keep up with the High Tech segment as it moves across the perceptual map.

Finance

We will finance our investments primarily through stock issues and cash from operations, supplementing with bond offerings on an as needed basis. When our cash position allows, we will establish a dividend policy and begin to retire stock. We are somewhat adverse to debt, and prefer to avoid interest payments. We expect to keep assets/equity (leverage) between 1.5 and 2.0. We measure performance in terms of ROE, Asset Turnover, and ROA.