Conch Republic Electronics: mini case
Conch Republic Electronics Principles of Finance DRP
Lance Gilbert November 30, 2014
With the company being midsized in the electronics manufacturing there is an increasing pressure to remain highly marketable and keep up with the product releases that are profitable within the publics technological desires. Having expanded their own base product from repair to the addition of product manufacturing, Conch Republic Electronics is aware Of how they need o adjust in order to compete outside their own geographical arena.
Their original revenue-producing smart phone model shouldn’t be rendered as obsolete as far as future sales. The idea of a two year termination plan could be stretched to three or four years and the current product could be advertised to the lower level electronically taught public. Advertise as a sort of a phone for the older age group that doesn’t want to relearn new and improved version of smart phone APS.
The original price can be lowered and touted as a sale or special value by purchase cost going to $299, allowing for the additional $24 per unit to be profitable. The current version can also be marketed as first phones for a younger demographic and further extend the sales of the outdated product. By neglecting the aspect of overseas outsourcing, the company itself can stand under a claim not made by many other electronic companies in that they are an exclusively American made product.
This allows for additional advertising pull for the US consumer. There needs to be an additional pitch to go with the new product itself as well as to allow for less of a drop off for the previous product production and sales. There is an increasing demand for manufactured durable goods in the US and household consumer spending is supported enough to allow them to be big-ticket consumers. Manufacturing production in the US is predicted to increase over the next two years by 4. 0% and 3. % respectively and not investing in the new smart hone would be detrimental to the company’s fiscal future.
CREE has to invest in order to remain competitive but they should also put emphasis on their draw as a smaller company in that they can offer their focus on onetime delivery, product quality, and overall customer satisfaction.