aura

aura seeks to be the top global company providing high-quality, reliable micro-processors whose success is guaranteed by our consistently attentive customer service and diligent observation of changing market trends.

The aura philosophy

• Constant communication
• Maximizing synergy: "the team can achieve more than the individual"
• If you're not first, you're last

Target Markets:

1- Mercedes

2- Workhorse

Meet the entrepreneurial team:

• Carey Carpenter--President
• Turner Faulk--VP, Marketing
• Christian Jewett--VP, Accounting and Finance
• Jason Werts--VP, Sales Management
• Hannah Werthan--VP, Marketing Research

Opportunities

• Three unsaturated markets: Workhorse, Mercedes, Traveler
• Largest markets: Workhorse and Mercedes in Chicago and Paris
• Huge opportunity to capture market share

Resources:

• Team dynamic
• $2,000,000 in seed capital
• Unique business philosophy
• Common understanding that the team comes first

Strategy

• Enter the largest geographic markets
• Build a market position
• Be the market share leader
• Produce what consumers want--pay close attention to customer needs--thus adopting market orientation
• Think towards the future--buy market research!
• Spend money to make money, seize on opportunities

Strengths

• Two sales offices: Chicago and Paris
• Confidence in our products
• Very competitive sales force compensation, 14 employees (maximum allowed)
• Fixed capacity: 50 units/day

Weaknesses

• Not entering Traveler market
• No offices in Sao Paulo or Shanghai
• Risky starting cash position ($4,650 with additional $310,000 in bank)

Opportunities

• Huge profit markets on our Kraken (Mercedes)
• Untapped markets
• Demand projection: 1,750 units/quarter
• Advertising

Threats

• Guido
• Under/overproduction as a result of faulty demand projections
• How much to invest in future capacity?
• Product flop especially if a competitor produces a more popular computer
• Failure to meet consumer needs

Strategy

• Taking advantage of fixed capacity
• Heightened expectations for sales employees
• Focus on Kraken, highest profit margins
• Low priced Titan to maximize market share
• Place ads in higher marginal utility media, in effort to increase reach and frequency of product (computer magazines vs. sports magazines)
• Invest in additional fixed capacity
• Prioritize investment in human capital
• Maintain market orientation: buy market research
• Expand to Shanghai based on projections of increased demand

Strengths

• Dominant Market Share in Mercedes and Workhorse Segments
• Competitive Advantage in financial resources, Starting Cash Balance of $767,517 plus $1,000,000 in seed capital
• Kraken 1 of 2 products rate as "acceptable" for Mercedes customers
• High sales force productivity
• Highest Operating Capacity within industry

Weaknesses

• Unmet demand in previous quarter: over 1,000 lost sales due to stock outs
• Unpopular ads, perceived as too cluttered
• Titan did not meet Workhorse consumer standards
• Below industry average future investment

Opportunities

• New store in Shanghai
• Design new product to meet Workhorse consumer needs
• Product growth stage, focus on advertising
• Undercut projected competitor cost on Titan
• Demand growing rapidly

Threats

• Competitors imitate successful products
• Customer ill will as a result of unmet demand
• Failure to match competitors' investment in future

Strategy

• Develop Titan 2.0 with increase data management capacity to satisfy Workhorse consumer needs, phase out Titan
• Defend Market share dominance
• Continue to prioritize Kraken given its profit margins
• Highly segmented advertising: Kraken engineers, Kraken manufacturers, Krakhorse
• Maintain competitive sales force compensation
• Focus on future, increase fixed capacity

Strengths

• Increased Revenues
• Well received products
• Success in meeting demand
• Remained top performing firm within industry
• Highest number of sales people
• Sales person compensation and productivity continue to top industry average

Weaknesses

• Inability to maintain Market Share in Q3
• Unfamiliarity in Traveler's Market
• Dangerous starting cash position $30,702
• Excess production results in maxed inventory
• Earnings per share decreased indicating slower growth
• Krakhorse advertisement unsuccessful

Opportunities

• SAO PAULO
• Traveler Market
• Product modification
• Expansion of Aura vision: become unprecedented force within computer industry

Threats

• Failure to recover market share
• Lingering customer ill will
• Change consumer needs
• Saturated Markets in Chicago and Shanghai

Strategy

• Recover market share
• Tap into Traveler's market, specifically in Sao Paulo
• Improve Kraken and Titan
• Premium price strategy for Kraken product line, low cost strategy for Titan product line
• Sell off inventory of Titan 2.0
• Focus energies on unsaturated Sao Paulo market (shift sales force representatives from Chicago to Sao Paulo)
• Increase fixed capacity

New Venture Creation: aura

SWOT

Q2

Q1

Q4

Q3

Q4 Performance Results

Q3 Performance Results

Q2 Performance Results

aura

aura