Erie Shareholders Meeting
Mike Reeser
Mirella Mendez
Alyssa Montgomery
Strategy Analysis
Product Life Cycle Differentiator
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Eat - Traditional
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Ebb - Low End
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Echo - High End
- Elf - Traditional/Low
Is the strategy working?
Round 8 Sales: $246,026,937
$22,588,410 Increase from Year 7
$22,588,410 Increase from Year 7
Profitability
- Net Profit: $23,989,000
- ROS: 9.8%
- Contribution Margin: 33.8%
- Contribution Margin by Product
Market Share
Future Strategy
Expectations
- Maintain Annual Sales Growth of 9%*
- Maintain Annual Profit Growth of 10%
- *Introduction of new products into new segments will increase both by 5%
Erie will continue to compete as a Product Life Cycle Differentiator
Action Plan
- Maintain products in current Life Cycle
- Introduce new product into the Performance Segment
- Only 2 products | 19.8% Growth Rate, Fastest Growing
-
Invest in Capacity for New Products
- Continue to invest in TQM
- Reduce R & D Cycle Time
- Increase Demand
Management Team Review
- Strengths:
- Successful Forecasting Formula avoided emergency loans
- Consistent Growth
Management Team Review
- Weaknesses
- Customer Survey Scores
- Inability to reduce Variable Costs
-
Three segment focus limited growth
- Did not look to compete in size or traditional
- Revenue grew year-to-year but not as much as competition in the end
What we learned...
- To compete you must watch your competition and what they are doing closely
- Cannot be afraid to take a risk to increase market share
- Capacity is key
Each department of a company requires knowledge and careful analysis to be successful
Team Erie should be retained by the board of directors
- Consistent growth since year 0
- No emergency loans
- Forecasting ability
- Meet the customers needs
- Have the money to implement future strategy
- Ready to be aggressive in the market
- Will continue to deliver positive results
Erie Capsim Presentation
By mreese23
