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Withreference to the recommendations approved by the board, there aredifferent steps or measures that were identified, which the companyshould follow in order to increase its outcomes significantly. One ofthe outcomes is that the revenue was expected to increase, however,this isn’t due to an increase in the number of units sold, butrather due to an increase in the amount of profit realized. At themoment, the selling price of the Kindle Fire is deemed to be too low,such that, the company didn’t make any profit from the sale of thisproduct. In order to ensure profit is realized, it was agreed theprice of the 10 inches Kindle Fire was to be raised from 299 $ to250$, which is still a competitive price. Compared to other competinggadgets such as iPad Air 10, which is priced at 499 $, and SamsungGalaxy, which is priced at 379 $, then increase in the selling of ourproduct would mean an increase in the amount of profit obtained fromsales of the products hence increase in the overall profit of thecompany.
Inaddition to the above measure, it was then agreed on the company Fireline products to be reduced from the current 5 to something like 1 or2 devices. This would significantly lower the operating expenses suchas selling and advertising cost. This is due to the fact, the costincurred when advertising five different types of devices will bereduced, not to mention there would also be a reduction inadministrative cost. This would be in cases such as staff reductionsand layoffs, meaning salaries paid to workers will be lower that itwas before. Moreover, expenses incurred through office supplies, andthe equipment’s will significantly be cut. With the decrease in theamount of expenses for the company, it would mean there is anincrease in the revenue realized by the company. This would in turnresult in an upturn of the net income, the rise in retained earnings,as well as the stakeholder equity will also be experienced. Insummary, the stakeholders would be happier with the companyperformance as well as with the improved financial gains.
Withthe focus on the recommendations, the second recommendation it wasagreed that, there was a need for a different memory in order toimprove the machine performances. Large memory machines would meanmore production or by an extended cloud space. This would in turnenable consumers to better their need. Moreover, the improvement ofmachine performance would also make products more valuable. With theuse of the product becoming more valuable, consumers will enjoy moresatisfaction, and the company`s products will be more sustainable. Atthe same time, with the prescience of different memory expansion,there would product differentiation. This would provide the consumerwith choices as each consumer demand is not the same. The result isthat consumers can have a lot of initiative maneuverability, makingthem change their products unique, so customers will be more loyalty,thus less threat from substitutes and creates higher entry barriersdue to customer loyalty.