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Eco 550 Assignment 2

In: Business and Management

Submitted By martinad9
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Assignment 2: Operations Decisions
ECO 550 Martin Company specializes in designing and creating high end eight-track players for client’s cars. Martin Company caters to the customer who is trying to keep the past alive and thriving. However out dated the eight-track player may be there are still those who believe it is still the best music medium. Be it nostalgia or plain stubbornness Martin Company has carved a niche in the car audio market with its unique and custom eight-track installations. Started in 2007 the company has had its ups and downs and has yet to turn a consistent profit. Due to the lack of profit Martin Company has recently hired a consultant to review their operations and make changes to allow the company to be more profitable. One of the first things the consultant must take into consideration is the current market for customized eight-track players. The company is based in southern California which with its unique combination of nice weather and eccentric wealthy individuals is the only place that the company has been able to establish a foothold. The age range for the average customer of Martin Company is somewhere between 40 and 50. As was stated before these individuals are trying to relive the past while at the same time educate younger music listeners to the history of sound. This is a very small demographic in southern California and the company typically only installs between 2,000 to 2,500 units per quarter. The remaining units that are produced from the warehouse are sold to international markets including China and Korea. The units that are sold overseas are sold at the price it took to manufacturer the units. The next factor the consultant will consider is the future market forecast in the eight-track market. Surprisingly the consultant has found that domestic interest in Martin Company’s product has been increasing over…...

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