Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lightening Listening had grown fast, adding retail customers at a rapid pace. The company s design IP and patented manufacturing process had helped it create

Lightening Listening had grown fast, adding retail customers at a rapid pace. The companys
design IP and patented manufacturing process had helped it create Bluetooth audio products
(mini speakers, headphones, hearing aids, amplifiers, hearing protection, etc..) with amazing
sound quality. However, such rapid growth had not been without challenges. The companys
number of products had grown rapidly at the same time that the number of new retail customers
had ballooned.
Bob Lightning, the founder, came into your office to discuss his concern about the situation.
Bob was an engineering genius with an audiophiles passion. He started the business eight years
ago when his son suffered hearing damage at a concert.
Bob: I got a call yesterday from the head of sales support. They want to add five new
positions and a new expensive CRM software. I am wondering if this added expense
makes sense.
We have grown so fast, I really dont know our customers anymore. I want to know
who we are selling to and how they contribute to profit. I have always been told that the
top customers make up the most profit in many businesses.
I am also concerned about our product creep. We have so many models now....does it
all make sense? Which of our products are most profitable? Are there products we should
stop selling?
I asked IT to send you the last three months of sales by customer and model so you
can get me some answers.
Questions to answer:
1. What vendors make up the top 80% of profit?
2. How do the remaining vendors contribute to profit?
3. How does each model contribute to profit?
4. What model do our top vendors buy?
5. What models should we consider discontinuing?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these General Management questions