Sabor Inc Case Analysis Study Example | Topics and Well Written Essays - 750 words

Sabor Inc Analysis - Case Study Example The standardization strategy also aimed to increase inventory turnover 20 times of the present rates. According to the company’s management, standardization will help increase sales and help prevent stock-outs. In addition, the company believed that standardization of its products would provide opportunities for lowering the company’s products thereby making the company gain a competitive edge over its rivals. Sabor Inc. had, for many years, sold air humidification and filtration units alongside its heating and cooling units. Air filtration units accounted for 7% of the total company sales. However, the manufacture of Marconil significantly increased the sales of the air filtration units as a percentage of the total sales. The Marconil was a new high-tech, thin, system of filtering small particles from the air. Sabor Inc. air filtration units became very popular due to the high number of people suffering from asthma and allergic reactions. Marconil was cheaper compared to electronic cleaning methods. Marconil cleaning system was popular due to its ability to kill airborne bacteria when used with ultraviolet light units. The Marconil filtration system led to increased sales of the Sabor Inc. air filtration system. Since the launch of the Marconi air cleaning system three years ago, the company has experienced impressive sales records. The sales have often exceeded the sales forecasts by the company’s marketing department. In the first year of its launch, the marketing department projected Marconi sales at $1million but the actual sales stood at $11 million. In the second and third years,the actual sales were $29 million and $ 72 million far beyond the sales forecasts of $15 and $40 million respectively. However, the marketing department predicts that sales growth will level off for the next three years. A. The company can contract Marconi air