Use Microsoft office power points for your analysis in this task. Create your answers in a presentation format (use power points as mentioned above). Case: Orange Company was based out of Southern California and was doing remarkably well considering that only 10 years earlier the company had been merely a hobby for Sam Wilkerson. Sam was fascinated by taking apart computers, adding memory, and then putting them back together. He never expected that his weekend hobby would turn into one of the highest earning computer companies in the world. The company’s relaxed atmosphere encouraged creativity and product innovation. The developers were never afraid to try something new. In fact, it was one of these highly experimental projects that led to their newest product: a smart phone that can do it all— simultaneously surf the Internet, text message, do voice recognition note taking, play music and movies, while still maintaining superior functioning for making telephone calls. With no buttons to get in the way, only a touch screen, it was unlike anything seen on the market. While the management at Orange felt that their new smart phone—named Gizmo—would be well-received by consumers as innovative and cutting edge, they had concerns. They were not sure about their target market, the marketing strategy, and the resulting supply chain implications. These decisions were directly tied to their pricing strategy and had capacity and delivery implications. Who would be their target market and how would they price the product given its abundant features? Should the product be targeted to business professionals or students or the public in general? If the Gizmo did significantly better than expected, could their supply chain handles the added demand? Orange was considering partnering with the largest mobile service provider in the industry, Random Wireless, for exclusive distribution. This would mean that they could utilize an already established distribution channel for their first smart phone release. Orange believed that this would mean significant distribution savings and the ability to reach a wider market. They would also be able to provide service support at many locations. However, there were also disadvantages to going through one exclusive distributor. Orange knew that they had a wonderful product but the key to success would be good marketing, an excellent distribution network, and a reliable supply chain. They had some decisions to make. Case Questions

1. Identify at least two different possible target markets for the Gizmo. How would the marketing strategy differ for each target market? How would the pricing strategy change and the volume sold? Identify the supply chain implications for each target market.

2. If Orange decided to go after multiple market segments, identify the supply chain requirements. Should they have multiple supply chains?

3. Discuss the advantages and disadvantages to going with one exclusive distributor. How would this decision be affected by the selection of target market? What would be the implications on the supply chain? What would you do if you were Orange?