Mgt Simulation - Technology Development

SIMULATION REPORT

Our long-term goal was to become the company which has the biggest market share in the world. This long term goal leads us to produce a large amount of smartphones. We decided to produce affordable phones with many features and high technology to satisfy most of the needs of consumers instead of producing less and selling it for higher prices to a few consumers.

At first we decided to start with the technology development and add more features on the low tech phones. In the next step, we made terms to invest more money in the factories. Factories are the most important part in our strategy plan, because when we want to sell the low tech phones for cheap prices, we have to produce a large amount, so that we can face the needs of the market and achieve more market shares.

However, there are still some discrepancies between projected and actual outcomes. When we made a final decision on our production, the actual outcomes is a little lower than what we expected between round 4 and round 5.

The reasons for the discrepancies are that we underestimated our market. Our price, compared to the other teams, was a little bit higher. It takes a lot of time to gain market share. Our problem was, we didn’t promote our products as much as we should but we noticed that in an early stage and tried to fix this issue with higher promotion. In that time we increased our own promotion, the competitors also increased their promotion. We thought we fixed our issue but we didn’t and our competitors still had a much higher promotion. We lost some of our market share, but we still made profit.

Round 4:

[pic 1]

Round 6:

[pic 2]

We also tried to get our market shares back, by raising our investment in the promotion, as well as in technology and features. This made our product better, compared to the competitors, because we offered more features and a lower price.

Our financial part wasn’t the best, so we tried to make it more efficient. We raised the amount of share buyback which increased the interests from the consumers to our company.

In the sixth round, we didn’t only raise our features; we also lowered our prices on Tech 3 and Tech 1, again. This decision worked out and resulted in getting back our market share, which reached 17.03% in global. This gave us an advantage in the upcoming rounds.

Round 4：

[pic 3]

Round 6：

[pic 4]

Between round 4 and round 5, the demand of Europe was lower compared to USA and Asian markets. We had a shortage on those rounds because the factories we invested on was not ready yet which resulted, that we couldn’t afford that many products in Europe, which was demanded. We already had over 18% market share in both, USA and Asia. Based on those factors, we decided to lower the supply to the European market, and concentrate on the USA and Asian markets, which lead to a higher market share than our competitors. In round 7 we started to enter the European market and sold the Tech 4 phones there. In the eighth round we had a high promotion combines with 10 features and a lower price. The reason for coming back to Europe was the conflict between Asia and USA. They both added very high taxes on imported products, which lead into high manufacturing costs. The import tax in Europe was much lower in round 8. In round 9 Europe disestablished the import taxes completely and we concentrated much more on this market and earned yield. We used the same strategy, which we used in the USA and Asia which increased our market share and lead us holding the biggest market share in Europe in Round 9.

...