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This document discusses product architecture and platform strategies for three drill types: Pistol, Straight, and Angle drills. It provides market share calculations indicating that the IR brand has a nominal share of 30%. Key factors affecting market share include branding, variations with cosmetic differences, and those with substantial differences. There are also insights on outsourcing, downward and upward substitutions affecting perceived quality in various market segments. The data helps illustrate how these elements impact overall market performance.
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Class 4:Product Architecture October 2006
Strong Interdependence Weak Interdependence
Market Share Calculations • IR has a nominal share of 30%. • Branding • IR only: no change • ARO w/label or cosmetic differences only: +5 % pts • ARO w/substantial differences (e.g., different housing): (+8 % pts for pistol, +6 % pts for straight and angle) • Outsourced economy product: -10 % pts of share in economy market • Downward substitution (e.g., precision housing on standard product): • +Y % pts for lower segment from increased perceived quality (0% motor, 1% anglehead, 3% housing, 3% chuck) • - X % pts for upper segment from cannibalization(0% motor, 0% anglehead, -5% housing, -3% chuck) • Upward Substitution (e.g., economy motor on standard product) • -Z % pts for upper segment from decreased perceived quality (-10% motor, -5% anglehead, -5% housing, -10% for chuck)