27 Jan Assignment Title: The Road to Widget Dominance
You’ve inherited a small factory that produces a single type of widget. While widgets are widely used across many industries, your factory has always been just a small player. Now, you’re determined to expand widget production and gain a larger market share.
Assignment Task:
Write a short report (approximately 1,000 words) outlining your potential strategies and the information you would need to make informed decisions. Focus on the following areas:
· Understanding Widget Economics:
· Research the broader widget industry. Is it a highly competitive market with many producers, or are there only a few large players with significant market power?
· Identify the key factors that determine the long-run cost structure of widget production (e.g., economies of scale, sourcing of raw materials, technological requirements). Cite your sources.
· Market Intelligence:
· Who are the main consumers of widgets? Are there niche markets for specialized widgets or potential for expanding demand in new industries? Focus on understanding what drives demand for widgets.
· Research industry reports or articles discussing trends and potential growth areas within the widget market as a whole.
· Strategic Decision Points:
· Analyze whether focusing on economies of scale (mass production of a standard widget type) would be a viable path for your factory to become cost-competitive.
· Research potential innovation in the widget market. Could you differentiate your factory by focusing on producing a specialized or improved widget? Explore the potential benefits and risks of this strategy.
· Discuss potential opportunities for vertical integration within the widget industry (controlling part of the supply chain or distribution).
Additional Prompts:
· Include a works cited section in an appropriate format (MLA, APA, etc.).
· Support your insights with relevant industry statistics, if available.
Objectives:
This assignment aims to develop the following skills:
· Conducting industry and market research.
· Understanding cost structures within a given industry.
· Evaluating strategic concepts like economies of scale, product differentiation, and vertical integration.
· Approaching decision-making with a focus on long-term planning.
