This research provides a marketing analysis and a finan cial analysis for the production and marketing clock and timer products by the General Electric Company. The results of the analyses are presented with respect to (1) sales for the most recent full year, (2) profitability, (3) production and market ing costs, (4) breakeven analysis, and (5) strategy.
The time frame of this case is the late 1970s. Within this time context, the latest full year for which sales data are available is 1977. The size of the total market for clock and timer products in 1977 was 20.807 million product units, with a market value of $121.26 million. General Electric's share of this market was 4.608 million product units (22.1 per cent), with a market value of $24.614 million (20.3 percent). Obviously, the average selling price of General Electric clock and timer products is lower than the market average, as the company's market value share is lower than its product unit market share.
Four year market projections predict a total market size of 25.035 million product units by 1981 (a four year market growth of 20.3 percent), with a market value of $146.528 million (a four year market value growth of 20.8 percent). Thus, while most of the projected market growth is expected to result from increased product unit sales, approximately 2.4 percent of the market value growth is expected to be the result of increases in the average product unit sales price.
Four year market projections predict a General Electric market share of 6.595 million product units by 1981 (a four year market growth of 43.1 percent more than twice the pro jected growth in total market size, which will give the company a product unit market share of 26.3 percent, compared to a product unit market share of 22.1 percent in 1977, a product unit market share increase of 19.0 percent over the four year period). The 6.595 million product units are expected to have a market value ...