Rambus Imaging Systems Harvard Case Solution & Analysis

Rambus Imaging Systems Case Solution

Introduction

Purpose and Value

The case defines the importance of a particular marketing strategy over the segment of health and technology. Rambus Imaging Systems played a vital role in the decision to expand the operations into different segments. For that, the advanced marketing strategy would require to increase the surplus over the use of each segments. However, Tracy and Joshi analysed three types of segments where the company would generate the surplus amount over the cost incurred under each segment and calculate the best price for each version (Supreme, Advanced, and Rambus-lite).

The main purpose of the study is to analyse the best version for the company to generate surplus amount as well as operating income, it should also critically evaluate the variations of the prices due to the threat of cannibalization caused by customers over one of the selected products that can decrease earnings of a particular segmented version. Tracy and Joshi should consider at least two alternatives for implementing the marketing strategy (two versions for profit generations over the period of 3 years) and then decide which one can be suitable for the company’s future concerns.

Recommendations over the best alternative

After the critical evaluation of the pricing strategy of the company, Tracy and Joshi might go for the advanced version due to less cost associated with it and generate moderate level of earnings. From the following analysis, it has been determined that some recommendations would help to balance the profits in each version and try to expand the best one in the long-term for higher surplus.

  • The first thing to consider for the marketing strategy should be to analyse the internal as well as external contingencies. This means that if the economic fluctuations would increase the cost of the operations, then the net earnings coming from the higher level version would decrease the annual operating income and revenues. Customers might cannibalize the other product level. Therefore, in order to manage the price and surplus for the company, it is recommended that the advanced version should be selected due to the less risk of loss in high cost.
  • If Rambus would select the supreme version, then it should decrease the price of the product in order to retain the customers under the use. This can only be done if majority of the investment would be contributed to the advanced level and few of them under less cost (In case of community centres and private practices) would be granted to the supreme version. Therefore, this would balance the entire pricing of Rambus due to less volatility involved under the community as well as private practices.
  • The best suitable version for the company would be the advanced version, due to the moderate results and less risk of volatility in the price level. In order to achieve the best practice, Rambus should contribute majority of version into the community level due to high profits included in the analysis. While large hospitals should be focused on the supreme version, the rest should be granted to Rambus-lite. This would achieve the best marking strategy and balance the price level in order to retain the customers under each segments.

Analysis and support

In this part, various results has been generated through information provided by Tracy and Joshi regarding the major segments for the investment to achieve the desired returns and customer retention over the three year period. The two executives knew about future market conditions and decided to provide relevant information about the success of the company under the proposed marketing plan..............

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