Congratulations and condolences.You have just been promoted to manage your company's "Star" product.Yes, they have classified it correctlyyou are the leader (45 % market share) in a high growth market (30% annual growth).But you're understandably nervous since you need to put together the budget for the coming year and can't screw it up. Using the data provided:

Current # of competitors (not including you)2

Total # of competitor's products2 (one each)

Total # of competitor's salespeople100

Total communication expenditures by

competitors (current annual estimate)$9 million

Average competitor price/unit$12,000

Size of market in units this year9,000

Annual market growth rate30%

Your current # company salespeople70

Your current annual communication budget$5 million

Your price/unit$13,000

Your profit margin per unit$7,500

Annual cost of salesperson$250,000

Annual existing product improvement costs$2,000,000

a)The rule for managing leadership positions is to defend your market share. What resources and budget will you request for next year?Support your request based on a share of resource calculation and any other factors you feel should be considered.Include any assumptions you made. (15 pts)

b) Does this market look like a good strategic (5-year time frame) opportunity? with any other considerations. (15pt)

Answer rating: 100% (QA)

a To defend the market share and sustain the leadership position I would request additional resources and budget allocation for the following areas 1 Salesforce Expansion Increase the number of compan... View the full answer