At the moment, our company has a sale of 800,000 and 200,000 entry level cameras and multi-featured cameras annually respectively. In year 2005, the company's performance was excellent since they generated revenue of $206 million with net earnings of $20 million which translate to $2.00 per common stock share. The digital camera users have appreciated our company's products and for this case, they have developed as substantial world wide market share.
Our company emphasis on the market share in all continents although we failed to achieve a substantial market share in United States and Asia since the amount of profit per share we were making was at minimal. We had a notion that the price of our products would assist as gain a substantial market share and for this case, we overlooked investing in the marketing department even though we had invested heavily on in the market share.
Our main marketing strategy was our image rating as we believed that this would eventually as it expressed the quality of our product since it attracted more customers to purchase our products. Our sales increased gradually since our customers believed that our quality of the products were high as the quality of the product goes with the image rating as it was our case. ...
Another strength that has assisted our company gain a substantial market share is advertising. People has to be made aware of a product for them to be purchased and it does not if the quality of a product is high, if people do not know of its existence, then a low quality may have a large market share since people of its existence. Our company invested heavily on advertisement as they always exceeded their advertisement budget of $300 to an actual spending of $537 in advertising.
Another strength that assisted out company succeed against its competitors is the market share. We started from the beginning to market out products in all the continents in the world in order to increase our sales revenue. This strength really helped as since we increased our sales and eventually our profits went up as our products were made known throughout the world.
We lowest product went for as low as $300 against our competitor lowest product that went for $345. We though if our product's prices were low, we would have high stock turnover since we would sell large number of products thereby increasing our sales. This was not the case as our prices were far too low to make a substantial profit that would outstand that of our competitors. Even though our market share was high, we failed to generate enough profit out of our multi-featured camera which we offered at $300 against our competitor's price of $345 on the same product.
Another weakness experienced by our company is on salaries. We thought that if we paid high salaries to our employees, we would motivate the more thereby increasing our efficiency due to increased productivity. However, we there was no room for increasing productivity as a