Detailed Review of Pricing and R&D Strategy of X5, X6, X7 Research Paper

Detailed Review of Pricing and R&D dodging of X5, X6, X7 - Research Paper ExampleIn a recent survey, ChangeWave found that out of 3,043 survey respondents from northwest America, 14% gave positive response to purchase a mobile tablet in the next 3 months (Epstein, 2011). This rise in the consumer adoption of new technology determines the extent of future changes in the pricing and reckon parcelling for Research and Development (R&D) of its products. Tablet Development is focused on providing high quality and utilization designed applications for tablets manufacturers and operating system providers. Its core products are X5, X6 and X7 that have been in the market for the last 6 years. However, there are major drawbacks in the existing price and R&D budget apportioning strategies that have undermined the new product development cycle in the organization. 1.1 Aim The aim of this report is to sidle up the drawbacks of the existing pricing and R&D budget allocation strategy on a f ull stop of 6 years for the core products of Tablet Development and to recommend an alternative strategy that should have been espouse to achieve the organizational goals. 1.2 Objectives To critically review the strategy of pricing and R&D budget allocation for each core product, namely X5, X6 and X7. ... The customer base also experienced 61% new customers, 94% repeat sales and 103% favorableness. However, the R&D be deteriorated by -33%. In 2011-12, the product X5 experienced 21% increase in its sales and revenue. The customer base experienced only 15% new customers, 72% repeat sales and 12% profit.ability However, the R&D costs remained stable with 0% change from the previous year. In 2012-13, the product X5 discovered a severe decline as its sales dropped with a 23% change from the previous year. The customer base also declined by 36% of new customers. The losses increase to 17%. In 2013-14, the sales declined by another 51%, new customers by 81% and lucrativeness by 88%. I n 2014-15, the sales declined by 26%, new customers by 100% and profitability by 500%. In the entire life cycle, the product X5 remained at same price of $265 and R&D cost of USD 7,20,000 with nil change. As a result, the product market saturation declined from 84% in 2010 to 3% in 2015. The repeat sales also declined from 94% in 2010 to only 3% in 2015. 2.2 Product X6 In the period 2010-11, the product X6 the price was $420 and experienced a growth of 126% in its general sales and revenue. The customer base also experienced 124% new customers and 81% profitability. However, the R&D costs deteriorated by -33%. In 2011-12, the product X6 experienced 60% increase in its sales and revenue and 53% increase in total costs. The customer base experienced only 56% new customers and 14% profitability. However, the R&D costs remained stable with 0% change from the previous year. In 2012-13, the product X6 observed a severe low increase as its sales dropped to 3% increase