Strategic Review

Product Reviews For X5

Overall analysis of Product X5 suggests that its condition is not good enough. Initially it was going good from 2010 to 2011, but then profits started to decline and until 2015, the product is in miserable condition. In the duration of around 4 years, the performance of X5 had been terrible, with declining revenues, market share, and profitability. A Point of concern in this regard that has been witnessed is that there was a reduction in R& D spending to 33% in 2011, and even after watching so much negativity in the overall performance of the product there was no change in R& D spending from there on. Since that time, the product is declining and may continue to decline if changes are not made. It has moved from its maturity stage and currently is in declining stage of its life cycle. In this stage, it is better to think of alternative plans or else the products usually are pulled out from the market (Enz, 2010, pp. 12-38).

Product Review For X6

The situation for Product X6 is almost identical to that of Product X5. It has also experienced negativity in terms of sales volume, revenues, profits and market share. The product faced similar issues with the R& D as the spending was reduced to 33%. The product in the initial 2 years witnessed profits and gained a good customer base. Nevertheless, things changed lately and it went to a declining path from which it has been unable to recover by far. However, the product is yet able to cover its cost and even give profits, though in reduced figures, but it is. In such a case product should be changed a bit to stay in the market (Wheelen & Hunger, 2008, pp. 17-56).

Product Review For X7

The analysis of Product 7 suggests that it has been introduced in the market in 2011, and initially in its introduction phase experienced some losses. Nevertheless, in 2015 it was able to produce good results and has the tendency to grow in the coming years. It is n the growth stage of its life cycle.

Financial Analysis

X5

In 2011, X5 had a sales volume of 1535407 and revenue volume of 406882843. In 2012, both sales and revenue volumes had an increase of 21%, but from then on there was a decline. In 2013, there was 23% decline in the volume, in 2014; it went to 51% negative and in 2015, the declining percentage was 26%.

In 2011, there was a 38% change in total costs for product X5. It further increased by 16% in 2012. Then in 2013, the cost was reduced by 18%, in 2014 by 37% and in 2015 was brought back to 15%.

Profitability for Product X5 was good initially with 103% increase from 2010 in 2011 and the figure was 26%. In 2012, it increased to 29% and then reduced to 24% in 2013. In 2014, there was a significant decline in profitability and the percentage was reduced to ...