Use the model you have created to answer the following questions. What was the CAGR of the overall market in units? What was the CAGR of the 'Direct Market Size in Units'? What was the CAGR of the competitor's 'Total Revenues'? What was the CAGR of the competitor's price to Direct? What was the CAGR of the company's total EBIT Did either company earn the majority of profits in Direct sales. What was the impact of the competitors aggressive pricing strategy? D I J K L M N 0 2016 650 H CAGR 15% A B Industry Unit Model 5 Estimated Total Market Size in Units 7 Growth Rate 3 Estimated Percent Direct 3 Direct Market Size in Units Retail Market Size in Units E 2017 748 15% 40% 299 449 F 2018 860 15% 48% 413 447 G 2019 989 15% 58% 569 419 20% 33% 217 433 Company Unit Models 2 Estimated Direct Market Share Estimated Retail Market Share 5 Direct Units Sold 7 Retail Units Sold 3 Total Units Sold 2016 50% 70% 108 303 Company 2017 2018 45% % 40% 75% OU 80% 135 165 102 336 358 24 2 471 523 2019 35% 85% 199 356 920 556 20 2016 50% % 30% 108 100 130 24 238 - Competitor 2017 2018 55% 60% 25% 20% 164 248 10 - 112 --- 02 89 277 - 337 337 2019 65% 15% 370 63 - 433 202 412 CAGR -11% 7% 23% 6% 11% 0% CAGR 0% 0% 23% 6% 12% CAGR 9% 9% -21% 51% 170 - 22% 22% 0% CAGR -6% 0% 42% - 22% 22% 2 Revenues Model Price to Direct Price to Retailers Direct Revenues Retail Revenues Total Revenues 2016 200 200 125 21,667 37,917 59,583 2017 200 125 26,910 42,047 68,957 2018 200 125 33,010 44,701 77,710 2019 200 125 39,859 44,535 84,394 2016 190 125 20,583 16,250 36,833 2017 180 125 29,601 14,016 43,617 2018 2010 170 125 42,087 11,175 2019 2019 160 125 59,219 7,859 67,078 3 53,262 7 B Gross Profit Model Unit Cost Direct Cost of Revenues 1 Retail Cost of Revenues 2 Direct Gross Profit 3 Retail Gross Profit Total Gross Profit 2016 100 10,833 30,333 10,833 7,583 18,417 2017 100 13,455 33,638 13,455 8,409 21,864 2018 100 16,505 35,760 16,505 8,940 25,445 2019 100 19,930 35,628 19,930 8,907 28,837 CAGR 0% 23% 6% 23% 2016 111 12,037 14,444 8,546 1,806 10,352 2017 111 18,272 12,458 11,329 1,557 12,886 2018 111 27,508 9,933 14,579 1,242 15,821 2019 111 41,124 6,986 18,095 873 18,968 CAGR 0% 51% -22% 28% -22% 22% 6% 16% CAGR CAGR 5 EBIT (Operating Profit) Model 7 Direct SG&A Percent 3 Retail SG&A Percent Direct SG&A Retail SG&A . Direct EBIT 2 Retail EBIT 3 Total EBIT 2016 10% 5% 2,167 1,896 8,667 5,688 14,354 2017 10% 5% 2,691 2,102 10,764 6,307 17,071 2018 400 10% 5% 3,301 2,235 13,204 6,705 19,909 2019 10% 5% 3,986 2,227 15,944 6,680 22,624 23% 6% 23% 6% 16% 2016 100 10% 5% 2,058 813 6,488 993 7,481 2017 10% 5% 2,960 701 8,369 857 9,225 2018 400 10% 5% 4,209 559 10,371 683 11,053 2019 10% 5% 5,922 393 12.173 480 12,653 42% -22% 23% -22% 19% > MODEL Simple Company MODEL Marketing Stratagy MODEL M MODEL Make-Buy Decision II. Use the model you have created to answer the following questions. What was the CAGR of the overall market in units? What was the CAGR of the 'Direct Market Size in Units'? What was the CAGR of the competitor's 'Total Revenues'? What was the CAGR of the competitor's price to Direct? What was the CAGR of the company's total EBIT Did either company earn the majority of profits in Direct sales. What was the impact of the competitors aggressive pricing strategy? D I J K L M N 0 2016 650 H CAGR 15% A B Industry Unit Model 5 Estimated Total Market Size in Units 7 Growth Rate 3 Estimated Percent Direct 3 Direct Market Size in Units Retail Market Size in Units E 2017 748 15% 40% 299 449 F 2018 860 15% 48% 413 447 G 2019 989 15% 58% 569 419 20% 33% 217 433 Company Unit Models 2 Estimated Direct Market Share Estimated Retail Market Share 5 Direct Units Sold 7 Retail Units Sold 3 Total Units Sold 2016 50% 70% 108 303 Company 2017 2018 45% % 40% 75% OU 80% 135 165 102 336 358 24 2 471 523 2019 35% 85% 199 356 920 556 20 2016 50% % 30% 108 100 130 24 238 - Competitor 2017 2018 55% 60% 25% 20% 164 248 10 - 112 --- 02 89 277 - 337 337 2019 65% 15% 370 63 - 433 202 412 CAGR -11% 7% 23% 6% 11% 0% CAGR 0% 0% 23% 6% 12% CAGR 9% 9% -21% 51% 170 - 22% 22% 0% CAGR -6% 0% 42% - 22% 22% 2 Revenues Model Price to Direct Price to Retailers Direct Revenues Retail Revenues Total Revenues 2016 200 200 125 21,667 37,917 59,583 2017 200 125 26,910 42,047 68,957 2018 200 125 33,010 44,701 77,710 2019 200 125 39,859 44,535 84,394 2016 190 125 20,583 16,250 36,833 2017 180 125 29,601 14,016 43,617 2018 2010 170 125 42,087 11,175 2019 2019 160 125 59,219 7,859 67,078 3 53,262 7 B Gross Profit Model Unit Cost Direct Cost of Revenues 1 Retail Cost of Revenues 2 Direct Gross Profit 3 Retail Gross Profit Total Gross Profit 2016 100 10,833 30,333 10,833 7,583 18,417 2017 100 13,455 33,638 13,455 8,409 21,864 2018 100 16,505 35,760 16,505 8,940 25,445 2019 100 19,930 35,628 19,930 8,907 28,837 CAGR 0% 23% 6% 23% 2016 111 12,037 14,444 8,546 1,806 10,352 2017 111 18,272 12,458 11,329 1,557 12,886 2018 111 27,508 9,933 14,579 1,242 15,821 2019 111 41,124 6,986 18,095 873 18,968 CAGR 0% 51% -22% 28% -22% 22% 6% 16% CAGR CAGR 5 EBIT (Operating Profit) Model 7 Direct SG&A Percent 3 Retail SG&A Percent Direct SG&A Retail SG&A . Direct EBIT 2 Retail EBIT 3 Total EBIT 2016 10% 5% 2,167 1,896 8,667 5,688 14,354 2017 10% 5% 2,691 2,102 10,764 6,307 17,071 2018 400 10% 5% 3,301 2,235 13,204 6,705 19,909 2019 10% 5% 3,986 2,227 15,944 6,680 22,624 23% 6% 23% 6% 16% 2016 100 10% 5% 2,058 813 6,488 993 7,481 2017 10% 5% 2,960 701 8,369 857 9,225 2018 400 10% 5% 4,209 559 10,371 683 11,053 2019 10% 5% 5,922 393 12.173 480 12,653 42% -22% 23% -22% 19% > MODEL Simple Company MODEL Marketing Stratagy MODEL M MODEL Make-Buy Decision