Based on the strategies of Baldwin and Digby, which of the following statements

Question

Based on the strategies of Baldwin and Digby, which of the following statements are true? (Select 4)

Baldwin positions their products in the Performance segment to maximize their strategy.

Baldwin has higher plant automation than Digby.

Digby has lower average product costs than Baldwin.

Digby focuses on reaching customers in all regions.

Baldwin focuses on reaching customers in all regions.

Digby can expand on their current strategy by repositioning their products to the Performance segment.

Baldwin must rely on consistent investments in R&D to continue developing and updating their product line.

Baldwin should raise automation levels to 10.0 to expand on their current strategy.

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http://new.capsim.com/modules/compxm/student/pdfReportGDNA.cfm?Round=5&simid=GXM78994_012&AnnRep=0&attrSec=1460E92C56FE6F40E78B5833EC315C94

Explanation / Answer

The following statements are true:

(i) Baldwin positions their products in the Performance segment to maximize their strategy. This is vis a vis Digby's situation. The comparison table is shown below:

Thus the speed and accuracy of Baldwin's products are much higher than that of Digby. Service life is also higher for Baldwin's products.

(ii) Baldwin focuses on reaching customers in all regions. Baldwin has presence in Americas, Eurpoe and Asia Pacific with market shares of 22.3%, 23.4% and 20.2% respectively. Digby has 0% market share in Asia Pacific.

(iii) Digby can expand on their current strategy by repositioning their products to the Performance segment. This is because Digby's products like Daze, Drive and Dare is behind Baldwin's products in terms of speed, accuracy and service life. This requires repositioning.

(iv) Baldwin should raise automation levels to 10.0 to expand on their current strategy. The current automation for Baldwin stands at 4.3. This is the lowest and other players like Andrews, Chester and Digby have higher automation levels. By rasing the automation level, Baldwin will be able to increase the speed, accuracy and service life for its products.

Team Product Speed Accuracy Service life Baldwin Baker 10.80 10.80 21000 Baldwin Bold 10.9 10.9 20000 Digby Daze 6.5 6.5 14000 Digby Drive 10.1 10.1 21000

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