Networking Pricing Analysis

The global network, serving as the backbone of the Internet and the flow of all digital information, has evolved since the birth of the internet in 1983 1. From the first generation of networks that supported the first cell phones, the system has matured to the existing fourth generation (4G), providing greater speed and expanded capabilities beyond basic calling and texting. The goal of our project was to identify how well Company X is positioned to capitalize on the transition to 5G, which will involve almost twice the amount of interconnected devices than today. To do this, we completed the following various tasks: 1. Identify the networking segments to focus our research. 2. Identify the major customers in these segments and how much of the market share each occupies. 3. Analyze the major benchmarks and metrics these customers value when purchasing the microprocessors for their networking devices. 4. Identify Company X's major competitors and their comparable products. 5. Compare the benchmark performances of Company X's offerings and its competitors 6. Create a model that provides a 5-year NPV as well as Company X's market share 7. Employ this model to evaluate various pricing strategies. 8. Determine the optimal pricing strategy and make a final recommendation. As 5G evolves, the demand for high-quality, low-power networking devices (e.g. routers, switches, access points) will increase. After performing our analyses, we will be able to decide how Company X's networking-oriented SoCs (chipset) compare to those of the other major competitors and use this relative performance to determine an appropriate ASP (average selling price) for these SoCs.