Reference no: EM133879839
Question
What are the critical issues you should plan to examine to determine if the industry is an attractive one for the CEO to continue to invest in and why? (Explain about the future market potential, competitive outlook, and the price)
Note: Make assumption if needed
Monsay is a diversified entertainment corporation. One of the industries that Monsay builds is Admision.co, a company that manufactures video games. The CEO of Monsay, has hired you as a consultant to examine the operations of a subsidiary of his corporation.
Specifically, he needs to know if he should approve a $200 million capital request for tripling Admision.co's capacity.
Additional Notes:
-Admision.co is 3rd largest manufacturer of hardware in industry (10% market share), meanwhile the other top two producers have 40% and 35% market share -Admision.co sales have increased rapidly over last year from a relatively small base, although the sales growth has slowed
- Admision.co remains less than 20% of company sales.