Scenario
You are a Business Strategy Analyst working for a mid-size retail company. You have been asked to review a current product that has decreased in sales and create a comparative matrix. You will need to research direct and indirect competitors and provide your matrix and a report to your CIO (Chief Information Officer). You have also conducted a manufacturing performance review and received the following sample size information from the product line from all of the manufacturing plants.
Instructions
Step One: Research one of the following three products and related industries. Create a comparative matrix (including your product) using the template and example provided to get some ideas. You will need to decide your objectives (Price, Easy to Use, Color Options, etc.) and your direct competitors. However, do not forget to include any indirect competitors or industries. NOTE: The template is just a starting point for your comparative matrix, and you may need to add more rows or columns depending on your building and research for your matrix. Remember, this will be an essential step in answering the questions in the next step, so you need to be mindful and thoughtful about what goes into your matrix.
Digital Cameras
Athletic Shoes
Soft Drinks
Step Two: After you have created your comparative matrix for your product, write a report for the CIO. Make sure you include your comparative matrix by copying and pasting it into your Word document. Address the following in your report:
What is the outcome(s) of your comparative matrix market analysis?
Using Six Sigma to compare the manufacturing defect rate on your product, what could be some additional reasons for the reduction in sales? What operational changes could be made to increase performance?
Discuss how the business performance management (BPM) process would impact the company.
Provide attribution for credible sources needed in completing your report.
Sample Solution
The comparative matrix shows that our product is competitively priced, easy to use, and has a good range of features.
Sample Solution
The comparative matrix shows that our product is competitively priced, easy to use, and has a good range of features.
Comparative Matrix
| Product |
Price |
Easy to Use |
Features |
Durability |
Warranty |
Customer Service |
Brand Reputation |
| Our Product |
$200 |
Yes |
16MP camera, 10x optical zoom, Wi-Fi connectivity |
Good |
1 year |
Excellent |
Well-known |
| Canon EOS 5D Mark IV |
$2,500 |
Yes |
30.4MP full-frame CMOS sensor, 4K video recording, weather sealing |
Excellent |
1 year |
Excellent |
Very well-known |
| Nikon D850 |
$3,000 |
Yes |
45.7MP full-frame CMOS sensor, 4K video recording, weather sealing |
Excellent |
1 year |
Excellent |
Very well-known |
| Sony Alpha A7R III |
$3,200 |
Yes |
42.4MP full-frame CMOS sensor, 4K video recording, weather sealing |
Excellent |
1 year |
Excellent |
Well-known |
Outcomes of Market Analysis
The comparative matrix shows that our product is competitively priced, easy to use, and has a good range of features. However, it is not as durable as some of the other products on the market, and the warranty is shorter. Our brand reputation is also not as strong as some of our competitors.
Six Sigma Analysis
The manufacturing defect rate for our product is 1%, which is below the Six Sigma standard of 3.4 defects per million opportunities. However, the defect rate for our competitors is even lower, which could be one reason for the reduction in sales.
Some operational changes that could be made to increase performance include:
- Investing in new manufacturing equipment to improve quality
- Implementing a more rigorous quality control process
- Training employees on how to prevent defects
Business Performance Management (BPM)
The BPM process would help the company to improve performance by providing a framework for tracking and measuring key metrics. This would allow the company to identify areas where performance is not meeting expectations and take corrective action.
Attribution
The information in this report was gathered from a variety of sources, including:
- The company’s internal sales data
- The websites of competing products
- Industry publications
- A Six Sigma training course
Recommendations
Based on the findings of this report, I recommend that the company take the following actions:
- Invest in new manufacturing equipment to improve quality
- Implement a more rigorous quality control process
- Train employees on how to prevent defects
- Implement the BPM process to improve performance
I believe that these actions will help the company to improve performance and increase sales.
Conclusion
The comparative matrix and Six Sigma analysis have shown that there are a number of factors that could be contributing to the reduction in sales for our product. By implementing the recommendations in this report, the company can improve performance and increase sales.
