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Cambridge Software Corp Case Study Solution & Analysis. In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. Cambridge Software Corp. Malayalam 3gp movies free download. Install wake on lan centos 5. Must decide whether or not to offer multiple versions of a new software product. The firm has identified five market segments for the software and is deciding which, if any, of three product versions (a high end 'industrial' version, a mid-range 'commercial' version, and a low-end 'student' version) to offer. View Homework Help - Case 2_Anup from BUSINESS 12334 at George Washington High School. Case 2 Analysis Cambridge Software Corporation Group 8: Anup Sheshadri, Dong Zhu, Saud Alhawwas, and Yannan Find Study Resources.
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Case 1 – Only Student software launched. In this case, the selling rate is $50 , the Unit Contribution will be fixed to $ 35 (50-15) for all other segments, and for student segment, it will be $15.( (60% of 50) -15). Case 2 – only Commercial software – The optimal price should be taken as 225 as that covers all other categories except the students. Case 3 – only Industrial software – the price should be 600 as the incremental contribution below this segment is less than the segment development costs. Version| Optimal Price| Total Contribution| Net Total Contribution TC-PCC| “Commercial”| $ 225| $ 7,750,000| $ 7,550,000|
“Industrial”| $ 600| $ 14, 805,000| $ 14, 305,000|
“Student”| $ 35 (15 for students)| $ 8,020,000| $ 7,920,000|
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Thus, the maximum profit is earned by selling the Industrial Version at price of $600 Consumer Surplus with “Industrial” @ $600 and “Student” @ $50 -------- | “Student” version“Industrial” | Large Co $100 (= $150 - $50) $1900 (=$2500-$600)| Labs $ 50 (=$100 - $50) $1400 (=$2000-$600)| Consultants$ 150 (=$200 - $50) $ 0 (=$600-$600)| Now we have 2 options for multiple versions – Industrial and student , Industrial and commercial. Surplus from Maximum Price for|
“Student” version “Industrial” version| Large Co $100 $2400 (=$2500-$100)| Labs$ 50 $1950 (=$2000-$50)|
Consultants$ 150 $450 (=$600-$150)| The consumer surplus shows how many segments will change to other option. The incremental contribution from targeting a product to a specific segment is lesser than the segment development cost in case of consultants. Thus, large cos and labs will take industrial and consultants..