Value Analysis

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Value Analysis

Companies are always looking for ways to increase profits on their products. With that in mind, a company may use the process of value analysis to explore ways of modifying the product to decrease production costs without having to reduce the price of the product. When value analysis is successful, the company will earn higher profits because the modified product will still appeal to consumers, and the company can continue to charge the same price for the product while producing it at a lower cost.

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    Now listen to part of a lecture in a business class.
    Okay, for example, a few years ago, there was a company that introduced a new pocket camera, and this camera came in a nice little leather carrying case, you know, that you could put the camera in to protect it when you were carrying it around. And this new camera was selling well; people were buying it, but this company always sends out questionnaires to people who've bought their products. So they sent questionnaires to the people who'd bought the camera and asked what they thought of the camera's various features. And one thing they asked about was the case that the camera came in. Well, it turned out that people liked having the case to put the camera in, but the fact that the case was made out of leather wasn't important to them. So the company realized that they were wasting money by making the case out of leather, which is expensive, when they could make it out of a material like nylon, which is much cheaper. So they started selling the camera with a cheaper nylon carrying case, and the camera was still just as popular as it had been before. It sold just as well.

问题

Explain how the example from the professor's lecture illustrates the concept of value analysis.

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  • 考场极速版:

    In the lecture, the professor uses a camera company as an example. The company sold its new pocket camera with a leather case, which was selling really well. However, after sending out questionnaires, they discovered that customers didn't really care about the material of the camera case. This meant they could replace the leather with a cheaper material - nylon. By making this change, the company was able to reduce costs while the camera remained just as popular as before.

    复盘进阶版:

    The professor gives an example of a camera company that used value analysis to cut costs without hurting sales.
    Initially, the camera came with an expensive leather case, and while customers liked having a protective case. However, after sending out questionnaires, they discovered that customers didn't really care about the material of the camera case.
    Realizing this, the company switched to a cheaper nylon case, which served the same protective function. As a result, production costs dropped, but the camera’s popularity remained unchanged because the key feature—protection—was preserved.
    This perfectly illustrates how value analysis works: modifying non-essential product aspects to reduce expenses while maintaining consumer satisfaction and profits.

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