Kenji Greenberg Erie 10 Strategy Proposal Our goal as a company is to gain a sustainable competitive advantage over our competitors

in all 5 segments by round 4. We aim to offer a focused strategy toward each of the 5 segments by meeting the needs of the consumer better than our competitors. There is an opportunity in all segments to perform well and gain sustainable long-term profits. Our main focus is to invest heavily in the first 3 rounds in R&D, Production, Marketing, and Human resources to gain an achievable competitive advantage by round 4. If we invest intelligently during the first 3 rounds, it will help our company become more cost efficient in order to maximize our profit margins. If our strategy is correctly executed, we can achieve an intimidating market share in all 5 segments that forces our competitors to rethink their strategy. We plan on investing as much as necessary to maintain the highest market share in each segment to guarantee we maintain this competitive advantage for years to come. Our initial rounds will be funded primarily by the issuance of long term debt within the first 3 rounds, current debt from rounds 4 to 8 when we have continuous profits coming in, and will issue stock sparingly (not more than 49%) in order to maintain control of the company. Our goals to gain a sustainable competitive advantage o Higher Sales through an aggressive marketing campaign Invest heavily in the first 3 rounds to reach 100% awareness and sales accessibility by round 4. Increased awareness and accessibility will help promote our brand to get consumers thinking about our products. This will lead to a higher demand for our products which will open up an opportunity to grab a large market share of each segment in the initial rounds. We plan on capitalizing early on our forecasted potential in sales in order to grasp a larger market share of each segment. When competing in all 5 segments, an average market share in each division would be 20%. We aim at achieving a market share of at least 35% in each segment by round 5 and keep investing to maintain a sustainable competitive advantage. In order to avoid stock outs in the earlier rounds, we want buy more capacity in the first 2 rounds, especially in the low end and traditional segment, where unit sales tend to be higher. From round 3 and beyond we will use our forecast to determine how much more to invest in capacity. Higher Quality Products through heavy initial investment Invest heavily in R&D through all 8 rounds. The most profound investment in R&D will come in the first 3 rounds and will focus more on the Size, High-End, and Performance segments due to the consumer preference of

Kenji Greenberg more advanced products and that a higher percentage of their purchasing decision relies on the products placement within the segment circle. We want to establish a superior product early on in the Size, High-End, and Performance segments to have a competitive advantage in terms of product release date, age, and cost in updating current products. Higher profit margins through a more efficient cost system We want to increase our profit margins and in order to do so we must reduce our costs as much as possible without sacrificing product quality. In order to lower labor costs, we want to significantly increase automation within the first 4 rounds in order to reach a rating of 10 in all 5 segments by round 5. This will drastically reduce our labor costs and increase our profit margins. We plan on having human resources utilize training hours and recruitment every round possible to raise productivity which will lower labor costs. Once we come upon TQM/Sustainability initiatives, we aim at investing as much as possible to reduce labor, material and administrative costs, shorten the time needed to complete R&D projects, and increase demand which will all increase our profit margins significantly.

Challenges that interfere with our strategic goals: We understand that with every strategy there are always risks and challenges a business must overcome to in order to be successful. To obtain a sustainable competitive advantage over our rivals, we must stay one step ahead and react efficiently and effectively against any compromising situation that ensues. Here are our main challenges: o Competitors We may face competitors who implement strategies similar to ours and we must be ready to adjust our strategic decisions in order to obtain that slight advantage to set ourselves apart. We also must be flexible and react to unfavorable situations that rivals implement which may threaten business. Raising Capital to Invest We may face the problem of not raising enough capital to invest heavily in the first 3 rounds. There is a slight possibility that we may have to issue more debt than expected and even issue stock. If we do issue stock, we should attempt to buy back shares whenever cash is available to help increase our stock price and receive more capital to invest from our earnings per share.

Our goal is to be the dominant supplier of sensors to all 5 segments of the industry by round 4. We strive to obtain a sustainable competitive advantage through a focused strategy and heavy initial investment. We want to provide our customers with products that exceed their standards all while steadily increasing our profit margin.