Clocky – The Runaway Alarm Clock | Case Analysis Group 3 | |

Problem Statement
Even though Clocky was the center of the media hype, Gauri Nanda is faced with many pressing challenges and issues for its commercial debut in the marketplace:

Analysis: 1. Industry Analysis
The US alarm clock market in 2005 was quite fragmented with a significant number of players in the regular alarm clock as well as the niche alarm clocks segment. The Americans spent over $7 billion on clocks and watches. On an overall basis, the consumer spending on clocks, lamps and furnishing as a category showed a increasing growth trend. The imported watches segment was also growing at a CAGR of 4% since 2002. The alarm clock industry can be further analysed using the Porter’s model and generic strategies as shown below.
Figure 1: Porter’s Five Forces Analysis

Economies of Scale:
In order to analyze the Economies of Scale in manufacturing of Clocky Alarm clock, we have divided the manufacturing unit of Clocky alarm into different segments. The major manufacturing units comprises of
1. Integrated Circuit Manufacturing Unit:
The Integrated circuit industry shows a high economy of scale. Since this is one of the most important and costlier part in the alarm clock, the decision in finding out the overall economy of scale is highly influence by this manufacturing unit.
2. Outer plastic body manufacturing Unit:
The plastic molding and manufacturing industry also shows significant economy of scale. Since variety could increase sales by attracting more customers, producing the same type would help to achieve scale economy. Hence a tradeoff has to be made in deciding between the number of varieties and total units to be manufactured in each variety.
3. Other miscellaneous parts manufacturing unit:
There are more than 90 miscellaneous parts in the alarm clock and their scale