Since 1965, Sentinel Weather Systems, Inc. has been perfecting weather

| March 29, 2017

Question
Since 1965, Sentinel Weather Systems, Inc. has been perfecting weather forecasting techniques, and reporting their forecasts via rugged, compact basic transistor radios that they manufacture and market to consumers. The radios can tuned to only one frequency which transmits Sentinel’s 24-hour regional weather reports. Their patented “Weather Guard” radios are distributed and sold world-wide and in the past have proven especially useful in predicting and warning about oncoming typhoons, tsunamis, and blizzards.

Recently, Sentinel conducted focus groups among junior college students at Southwest Arizona Regional College, the local community college near Sentinel’s headquarter building. The research summary stated: “Our findings indicate more and more consumers are turning to the Internet and smart phones for weather forecasts. Many of the subjects in our study did not even own a weather radio”.

In response to this disturbing information, T. Dermott McHenry III, Sentinel’s CMO, reassured the firm’s shareholders that the company will find new, innovative ways to manufacture their radios at lower costs, so they can offer them to customers at a lower price and still make the 70% profit margin they always have. This will be coupled with a multi-million dollar promotional campaign to educate the public on what he called ‘the obvious benefits of weather radio reporting’. McHenry continued: “Customers don’t seem to understand, but we will educate them. The Internet is no match for our superior means of forecasting and broadcasting weather reports. We will never give in to this competitor that has been stealing away our market share and apparently is our largest threat today, according to the intensive research we’ve conducted”.

a. Using concepts and frameworks we’ve discussed in MBC 636, evaluate Sentinel Weather System’s actions and statements.

b. Do you agree with the CMO’s strategic approach? Why or why not?

c. If you were the CMO, what would you do?

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