Scribd
Upload
37 views

Business Analytics - Answer 4

The document analyzes strategies for introducing a new product either in the North American (NA) test market or globally. It provides financial details for high or low response scenarios in NA (60% vs 40% probability) and the expected values and risks associated with different strategies based on NA response. A sensitivity analysis shows the optimal strategy is to launch in the NA test market first if the probability of a high NA response is over 40%.

Uploaded by

Peuli Das
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
37 views

Business Analytics - Answer 4

The document analyzes strategies for introducing a new product either in the North American (NA) test market or globally. It provides financial details for high or low response scenarios in NA (60% vs 40% probability) and the expected values and risks associated with different strategies based on NA response. A sensitivity analysis shows the optimal strategy is to launch in the NA test market first if the probability of a high NA response is over 40%.

Uploaded by

Peuli Das
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 8

High Response (60%)

$ 2000000
Introduce Product Globally

Low Response (40%)


$ 450000
$530,000
$ (850,000.00)

Remain in NA
$ 120000
$1,000,000
$1,150,000 ($400,000) $1,000,000

ANALYSIS

The optimal strategy would be to launch the product in the test market of NA in case of high respons
And to launch the product globally in case of low response.

Risk Profile:

In case of High Response in NA and Markets Globally


In case the response is high in NA and Low in the Markets Globally
In case of Low Response in NA and if the company has decided to remain in NA

Expected value of Risk Profile


Sensitivity Analysis: As we discussed that the optimal strategy should be to stay in NA test mark
The sensetivity of optimal strategy is as follows:

Expected
Probability Value Decision
(NA High
Response) (In USD)
0.1 530000 Global Market
0.2 530000 Global Market
0.3 530000 Global Market
0.4 578000 Test Market
0.5 722500 Test Market
0.6 867000 Test Market
0.7 1011500 Test Market
0.8 1156000 Test Market
0.9 1300500 Test Market
Market
Globally
$1,011,500

($ 200000)

High Response (70%)

$1,445,000
$1,011,500

Drop Product

Stay in NA
$ 200000
$ (200,000.00) Introduce in NA test market

Market
Globally Low Response (30%)
($ 600000)
High Global Response (90%)
$ 2000000

Outcome
$1,600,000

1600000
f NA in case of high response.

Probability

$1,011,500
$1,445,000

0.3
0.07
0.63
$50,000
Low Global Response (10%)
$ 450000

($200,000)
($200,000)

--

NA
High Global Response (5%)
$ 2000000

($275,000)
$1,200,000 ($350,000)
d be to stay in NA test market.
Drop Product
Low Global Response (95%)
$ 450000

($200,000)

($200,000)

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy