DeepDarkFantasy Inc: Primary Market of Operations

Factor of Success #2 School Name DeepDarkFantasy Inc Columbia Student’s Name Class Name/ Code Brief Company Description The DeepDarkFantasy company is a manufacturing firm which is focused on producing dental hygiene products for a global market. DeepDarkFantasy is headquartered in Bogotá, Colombia and has the main company there. Primary Market of Operations Our primary market of operations is in Colombia, South America. The country has a vibrant economy for a third world country and most of the raw products we need for manufacturing our products are available. The factors of production within the country are cheap. First, labor is cheap because the country grapples with over 9.2% unemployment rate as on 2016 according CITATION Col171 \l 1033 (Columbia Reports, 2017). Therefore, the labor market forces have brought the cost of labor down. The cost of land and other raw materials is also very low. Our company negotiated with the government for competitive tax breaks to relocate our processing plant there. These tax breaks allow us to produce our products with the least cost possible and then ship it to our consumers worldwide. The tax breaks have given our company a very huge advantage for to produce competitively priced products for the 50 million people in the country. We thus have the cheapest products in the market which has given our company an unparalleled advantage in the industry. Secondly, the country of the country is a good market for our products. This is a good market and the neighboring countries do not have a company located within their borders which is a competitor in our industry. Our competitors’ products tend to be highly priced to cater for the shipping to these countries and for the high production cost in the respective countries of production. They also incur export and import duties to get their products to their consumers in these countries. On the other hand, having situated our company within the region, we have very advantageous position within the region. Boston Consulting Group Matrix (BCG matrix) Source: CITATION Sma17 \l 1033 (SmartInsights.com, 2017) The BCG Matrix helps decision makers to evaluate their products and they determine how much they can invest in them depending on the profitability to their business CITATION Mar171 \l 1033 (Martin, 2017). For cash cows, these are the low growth products which have high returns because of their high market share. Stars are products with relatively high market share and high market growth. Their return on investment surpasses any other category/ product. Dogs are low growth and low market share products and most companies trim them off to ‘cut the fat.’ The ‘question mark’ product either require more resources in marketing to become a star product or they can be dropped into the dog category. When they are relegated into the dog category, they can be trimmed alongside other products in the dog category. My first product which will be in the cash cow category will be a large toothpaste which is designed for families. It will be targeting the huge population within the country by creating a product for families which is cheaply priced. It has potential for high growth because this market likes large sized products priced competitively...