Team Orange

DFES- Presentation

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 Team Orange-Analysis till date
Asia-Across rounds focus has been on Tech 1 and 2
Europe-Focus has been on Tech1 and 2 and Tech 4
now
USA Focus has been on Tech1 and 2
Caitaize-Invetory-Tech1 and 2
unsold
Arena
Opportunity-
Econo Technology-
mic to move into Tech 3
Staging and 4 across Geos
logic Vehicle
Garner market share
by region in specific
Tech
Differentiator
o Pressure exerted by Team Green,Red,Ochre
and Pink Price-Opportunity-WTP
o Exerts pressure on Blue and Grey Tech1-$100 scope
Tech2-$200 scope

CTSR-3rd best->-23.16
Shareprice$60.7( 3rd best)
EBIDTA-$12.99(4th best) Concerns: Flat growth of revenue,Underutilization of US factories(12)
EPS->$-3.78(4th Best) Positives: Profitability has increased for past 2 rounds,one of the healthiest balance sheets
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Changing the fate of the colour

Round 3 Round 4 Round 5 Round 6

What we inherited Our turn around

o Pressure exerted by Team Green,Red,Ochre and Pink Asia-Across rounds focus has been on Tech 1 and 2
CTSR-3rd best->-23.16 Europe-Focus has been on Tech1 and 2 and Tech 4 now
Shareprice$60.7( 3rd best) USA Focus has been on Tech1 and 2
EBIDTA-$12.99(4th best) Invetory-Tech1 and 2 unsold
EPS->$-3.78(4th Best) Opportunity-WTP
Concerns: Flat growth of revenue,Underutilization of US factories(12) Tech1-$100 scope
Positives: Profitability has increased for past 2 rounds,one of the healthiest Tech2-$200 scope
balance sheets Opportunity-Technology-to move into Tech 3 and 4 across Geos
o Exerts pressure on Blue and Grey
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Relative positioning of the firm in various technology region combinations
across time
Boxplot of Tech 1, After Tech1, Tech 2, After Tech 2 Boxplot of USA T 1, AFTER USA T1, USA T2, AFTER USA T2
40 40

35 35

30 30

Data
Data

25 25

20 20

15 15

10 10
Tech 1 After Tech1 Tech 2 After Tech 2 USA T 1 AFTER USA T1 USA T2 AFTER USA T2

Boxplot of EUROPE T1, AFTER EURO T1 Boxplot of ASIA T1, AFTER ASIA T1, ASIA T2, AFTER ASIA T2
50
70

60
40

50

30
40
Data

Data
20 30

20
10
10

0 0

EUROPE T1 AFTER EURO T1 ASIA T1 AFTER ASIA T1 ASIA T2 AFTER ASIA T2

Turnaround Strategy - Sales, Profit &Inventory
What we want ? Boxplot of SALES O, SALES AFTER, PROFIT O, PROFIT AFTER, ...
Increase in Sales 2500

Increase in Profit 2000

1500

How to do ?

Data
1000

Focus on capacity utilization.

500

Monitoring and control Inventory

0
Operate in a less crowded market
-500

SALES O SALES AFTER PROFIT O PROFIT AFTER INVENTORY INVENTORY AFTER

 Resources our predecessor had that we used to plan and execute the next
stage of growth for the firm in rounds 5 to 7:

Invested in Asia plants 5 plants (US -12, Asia -5)

Invested in R&D. (10 features in tech 1& 2)
Good market share in Tech 2 (24% t the end of round#4)

market share Orange

25.00

20.00

15.00

10.00

5.00

0.00
1 2 3 4 5 6

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 Additions that we made to the strategy of our predecessor:
Asia Market share Orange
Focussed Asia market 30.00

Aggressive promotion and pricing strategy in

25.00

20.00
Asia & Europe 15.00

WTP on tech 1 in Europe 10.00

5.00

0.00
1 2 3 4 5 6

Elements that we deleted or substantially modified? : 70000 Inventory

60000 Qty

50000
Sold 2 US plants due to under utilization of capacity in Round 5 40000
30000
Focused on market where everyone exit (tech 1 in Europe) 20000
10000
Inventory reduction and production planning just to meet the demand 0
1 2 3 4 5 6

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 Additions to strategy- In direct competition

Round 4 Round 5

Sweat the assets->Sell inventors, reduce prod

cost,keep price min to max market share
Work on our strengths banking on strengths in Tech
1 and 2 and stay put
Round 6
Stay away from being a price player only
Focus on features and premium
feature rich play in chosen tech
and regions -> generating max
value to customers
Round 7-> Exit Europe and concentrate on Tech2 in
USA and Tech 1 and Asia

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 Working to our strengths

Leveraging our strength in Tech 1 in US and Leveraging our strength in Tech 2

Europe and exiting players in US and existing players

Garnering WTP with Tech4 in

10 Europe and exiting on crowding
 How the firm we were heading earlier is being
managed under the new management team
Green team post switch - 1
The global market share has dipped from 18.94% to 9.58 %, in the round after the
switch
Tech1 was discontinued in USA and Tech4 was introduced in round 5.
Similarly, Tech1 was abandoned in Europe and Tech2 was introduced.
The plant in Asia worked at 100% capacity utilisation.
Though new technologies were introduced, the promotion budget was reduced
after every round in order to reduce costs. This was one of the causes causing rise
unsold inventory.
The number of features were kept same from round5 thru round6, in all markets
and technologies, indicating no purchase of features an thereby reducing cost.
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 Green team post switch - 2
Team green did not invest in R&D. This resulted in reduction of cost.
No further investments in plants was made by the team
With introduction of Tech 4 in Asia by as many as four firms, market share of team
Green in Asia is under threat from round 5 onwards.
Piling inventories and falling market share resulted in unplanned short term
borrowing which reduced the profits for the firm. The interest rates were one
of the highest for the team.
Team Green reduced the tax outgo very effectively increasing the PaT from round
4 thru round 6.

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 Green team post switch - 3
To sum up
Team Green worked on increasing profit through reduction of cost.
They did not take any steps for increasing WTP either through promotions or newer
technologies.
Team Green, it seems from data, has not realised that Tech4 space in Europe is getting
crowded and is maintaining focus there. At the same time Tech 1 space in USA is being
vacated by players including Team Green
Tax management was effective and resulted in better PaT.

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 Our team learnings post switch
The first step towards managing the new firm is to understand the strategy being
followed by the firm. This includes:
Markets where the firm was operating
Product offering of the firm
Cost and finance operations of the firm
In order to stay in profit, the first action is to reduce costs.
The teams also tried to retain or improve the market share for the firm.
Charting a strategy before decisions, focusing on competitive advantage, created
higher WTP
Focus on core market USA and Asia and protect market share and increased WTP

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