Business Studies

Business Studies

Comp-XM® Industry Conditions Report

1: Segment Locations and Drift Rates:

Each year, the segments drift the length of the hypotenuse of the triangle formed by customers desire for smaller and faster products.

Table 1: Segment Circle Drift Rates: Every year, customers demand increased performance and decreased size.

Segment Performance Size
Thrift +0.5 -0.5
Core +0.8 -0.8
Nano +0.8 -1.1
Elite +1.1 -0.8

Perceptual Map

Perceptual Map Form: The segment fine cut circles and centers for Round 0 are shown below.

Table 2: Segment Centers at the End of Each Round: Note the drift rates vary for each segment.

Thrift Core Nano Elite
Round Performance Size Performance Size Performance Size Performance Size
0 7.1 13.0 8.8 11.3 10.3 8.1 12.0 9.8
1 7.6 12.5 9.6 10.5 11.1 7.0 13.1 9.0
2 8.1 12.0 10.4 9.7 11.9 5.9 14.2 8.2
3 8.6 11.5 11.2 8.9 12.7 4.8 15.3 7.4
4 9.1 11.0 12.0 8.1 13.5 3.7 16.4 6.6

The information in Table 2 reflects the segment centers at the end of the round. Therefore, the Round 0 positions can be seen as the Round 1 starting positions, Round 2 positions can be seen as the Round 3 starting position, etc. Each month during the simulation year, the segment drifts 1/12th of the distance from the starting position to the ending position.

Table 3: Ideal Spot Offsets: Customers prefer products located this distance from the center of the segment circle.

Segment Performance Size
Thrift 0.0 0.0
Core +0.4 -0.4
Nano +0.8 -1.1
Elite +1.1 -0.8

2: Segment Sizes and Growth Rates

Your customers fall into four groups which are called market segments. A market segment is a group of customers who have similar needs.Each market segment grows at a different rate. Table 1.1 lists the beginning segment growth rates for your industry. The growth rates might change from year to year. Check the Segment Analysis Reports in the Comp-XM Inquire each round for the upcoming year’s growth rate.

Table 4: Industry Conditions Beginning Segment Growth Rates

Growth Rate
Thrift 11.0%
Core 10.0%
Nano 14.0%
Elite 16.0%

3: Buying Criteria By Segment

Customers within each market segment employ different standards as they evaluate sensors. They consider four buying criteria:

  • Price
  • Age
  • MTBF (Reliability)
  • Positioning.

The buying criteria for each segment, in order of importance, displays below. Positioning and Age score information also display.

3.1 Thrift Segment Buying Criteria (Round 0)

Thrift customers seek proven products, are indifferent to technological sophistication and are price motivated:

  • Price, $14.00-$26.00 – importance: 55%
  • MTBF, 14,000-20,000 – importance: 20%
  • Ideal Position at the end of Round 0, performance 7.1 size 13“ importance: 15%
  • Age, 3 years – importance: 10%
Industry Conditions Figure 3.1: Thrift Buying Criteria

Thrift customers give higher scores to sensors in the 3 year range

 

3.2 Core Segment Buying Criteria (Round 0)

Core customers seek proven products using current technology:

  • Price, $20.00-$32.00“ importance: 46%
  • Age, 2 years“ importance: 20%
  • MTBF, 16,000-22,000“ importance: 18%
  • Ideal Position at the end of Round 0, performance 9.2 size 10.9“ importance: 16%
Industry Conditions Figure 3.2 Core Buying Criteria

Core customers give higher scores to sensors in the 2 year range.

 

3.3 Nano Segment Buying Criteria (Round 0)

Nano customers seek cutting-edge technology that is small in size.

  • Ideal Position at the end of Round 0, performance 11.1 size 7“ importance: 35%
  • Price, $28.00-$40.00“ importance: 27%
  • Age, 1 year“ importance: 20%
  • MTBF, 18,000-24,000“ importance: 18%
Industry Conditions Figure 3.3 Nano Buying Criteria

Nano customers want sensors in the 1 year range.

 

3.4 Elite Segment Buying Criteria (Round 0)

Elite customers seek high reliability and cutting edge performance technology:

  • Age, 0 years“ importance: 34%
  • Price, $30.00-$42.00“ importance: 24%
  • Ideal Position at the end of Round 0, performance 13.1 size 9“ importance: 22%
  • MTBF, 20,000-26,000“ importance: 20%
Industry Conditions Figure 3.4 Elite Buying Criteria

Elite customers give higher scores to newer sensors.

 


4. Projected Interest Rates

Prime Interest Rate Round 1: 8.0%

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