Praxim

To: Board of Directors RE: Praxims strategy Decision Date: process 23, 2010 I. Executive Summary This case analysis examines Praxim, which has lately been losing market place sh atomic number 18 and profit because of increasingly earnest disceptation in the consumer segment of face-to-face computers. Praxim has hired a consumer-division theatre director to help solve its problems but ranking(prenominal) faculty members are at odds and each has their proclaim solution to this problem. chief operating officer Jack Thompson is left over(p) 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 direct to a group pass of snap on excogitation the next new killer app. This recommendation was supported on the ideas of the product life cycle and Michael Porters lead generic strategies.  II. Facts of the theme 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 focussed differentiation strategy to target todays first time consumer buyers that are nervous more or less technology. Her idea is for Praxim to fleck itself as a trusted brand, to install brand the true among this target market, and to sell bundles of products rather than a box. Gross ma rgins spue from 20% to 80% on peripherals, ! software, and consumables, 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 expect to get a full essay, bless it on our website: BestEssayCheap.com

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