12.6 Differentiator with Product Lifecycle Focus

A Differentiator with a Product Lifecycle Focus strategy distinguishes its products with excellent design, high awareness and easy accessibility. The company will develop an R&D competency that keeps designs fresh and exciting as they change in appeal from High Tech to Low Tech. Products will keep pace with the market, offering improved size and performance. The company will price above average and will expand capacity as it generates higher demand.

Mission Statement

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

Tactics

Research & Development: We will have multiple product lines in both segments. Our goal is to offer customers products that match their ideal criteria for positioning, age, and reliability.

Marketing: We will spend aggressively in promotion and sales. We want every customer to know about us, 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. After our products are well positioned, we will investigate modest increases in automation levels to improve margins.

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.