The Solar Feeder Essay Example

more expenses than they had net income.

There were no investors because they never had a realistic marketing/business plan. There were many production issues that were never addressed before production was initiated creating much larger cost factors. They had never addressed the opportunity that target marketing could have provided them and they did not make good use of their advertising efforts. Research and development was not done thoroughly and competently. The pricing of their solar feeders was higher than their competitions prices. The drop shipping costs are very expensive. SDI, Inc. missed an ordering window opportunity in 1999.

Analysis The company is not making a profit. SDI, Inc. is spending more money than they are making. The development process is lacking in-depth research which is creating production costs that are excessive. The shipping costs are very expensive. They have a good product, but have not researched for production, marketing, and advertising strategies. They started making the solar feeders before they had the product ready for manufacturing at the lowest cost possible. They have been selling the feeders for more than the competitor’s prices. Problem Statement What can SDI, Inc. o to make a profit in their business of making the solar feeders? Alternative Courses SDI, Inc. can hire a great accountant to get their books in order; maybe things are better than the books now show. This solution will not fix all the other issues of development, target marketing, advertising, and production. They do need to get their accounting in order. SDI, Inc. can create a marketing/business plan and get more investors involved so they can produce more feeders faster. This option would give them more money

for development, production, and target advertising.

SDI, Inc. can invest all available funds into research and development to cut long term costs and production issues. They will have to borrow money to invest more money into their business. In the long term it would help, but could also make them go under if the money is not managed very carefully. SDI, Inc. could try to find someone to manufacture the feeders cheaper. With a less expensive manufacturer they could make more feeders faster and therefore, make more money. Not keeping up with sales is a major part of the companies’ problems, and this option can cut costs.

SDI, Inc. can merge or partner with one of the larger solar feeder companies. They would lose the control of their new, innovative product if another company partnered or merged with them. This option would give SDI, Inc. more access to research and development, and manufacturing at lower costs. SDI, Inc. can do nothing and continue doing business as they have done previously. This option would not solve any of the companies’ major issues, and would certainly not help them make more profits. Recommendation I recommend that SDI, Inc. finds a cheaper manufacturer.

Implementation Strategy SDI, Inc. needs to investigate more options for manufacturing the solar feeders. Contacting manufacturing companies and getting estimates could give them valuable feedback. Getting a cheaper manufacturing facility will allow SDI, Inc. to be able to afford the production and make more feeders so they can keep up with the sales. The faster they can produce the feeders the more feeders they will sell. SDI, Inc. needs to check the possibility of manufacturing in other countries,

which is cheaper than the USA costs to produce the feeders.