Question 3 20 marks Doit Pty. Ltd. Is a company producing mobile phones and has a strategy of product differentiation. The following analysis has been made: 0 Growth component: Change in operating income due to growth: $300,000 F a Price recovery component: Change in operating income due to price recovery: $600,000 F . Productivity component: Change in operating income due to productivity: $1,000 U Required: 1. By reference to the analysis above, has Doit Pty. Ltd. been successful with its product differentiation strategy? Explain whether or not this analysis result is typically the case for a business pursuing a product differentiation strategy, by commenting in detail on the features of each component, and their effects on operating income. (6 marks) 2. Discuss the indicators of a successful product differentiation strategy by reference to two key features for each of the Balanced Score Card perspectives. (4 marks) The following additional information has been gathered on the market in which Doit Pty. Ltd. operates: Based on the data given at the beginning of this question, suppose that the market for mobile phones grew by 5% during the year. All increases in sales greater than 5% are the result of Doit's strategic actions. Sales this year were 438,000 units, and 410,000 units in the previous year. Required: 3. Calculate the change in operating income in the year due to growth in market size, product differentiation, and cost leadership. How successful has Doit been in implementing its strategy of product differentiation? Explain. (10 marks)