Under represented segments within this industry are the Sports and Minivan vehicle classes, where Firm B and Firm C monopolize these segments respectively. The Economy, Luxury, Truck, and Utility vehicle classes all have two vehicles offerings each. With lower ratings in technology capabilities for our Firm, there is an opportunity for minor upgrades to interior, styling, safety, and quality design to our existing high performing vehicle classes:
In effect, expected price range is primarily a positioning issue before the actual buying process begins. How do you change the MSRP of a product?
On the consumer marketing decision screen, click on the product, and then you'll be able to change the marketing mix decisions for that product.
Is there a way to calculate the profit-optimizing price of a vehicle? The test market tools - test market is the best approach for optimizing Stratsim simulation on current products. Concept tests tools - concept test is the best place for new products or upgrades.
Of course, competition will likely change marketing mix or new productsso these studies provide guidance, but they can't include competitive strategy. Is it technically possible for StratSim customers to pay more than the sticker price? Yes, it typically happens in one or more of the following circumstances: This would typically happen on higher-end vehicles.
What is the difference between base cost, unit cost and dealer price? There are definite economies of scale present in the automobile industry and in StratSim as well.
An obvious example would be use of existing capacity a fixed cost. A second example Stratsim simulation distribution. Distribution costs are generally fixed, so again, a firm that sells more vehicles per dealer enjoys a cost advantage where the fixed costs of the dealership network are spread over more vehicles.
There are also some fixed costs included in the general and administrative expenses on the income statement which are the same for all firms, so again, spreading these costs across more unit sales provides a relative advantage.
In StratSim, there are learning curve effects present at both the product level and the class level. Therefore, all things being equal, a firm that has higher market share with a particular product, or higher market share of a particular vehicle class will enjoy a cost advantage over those products or firms with lower unit market share.
Savings through Product Design. It is important to recognize that the product design process has an impact on unit variable costs. Part of this is determined by the specifications of the product, with higher values increasing the unit costs all things being equal. However, one of the major sources of lowering unit costs is provided through the upgrade process.
When a vehicle is upgraded, along with creating the new product design, the engineers working on the product also attempt to find ways to lower the cost of the product without sacrificing quality. Your firm can calculate the impact of the cost savings of an upgrade by choosing to upgrade a product and making no changes to the design.
This difference is the cost savings due to re-engineering the product design. Realize that you may both change the specifications and enjoy savings due to the upgrade process itself. In addition, products that share common design elements e. Although these savings are minimal, it should be considered during the product design process.
Savings through Investment in Technology Capabilities. Finally, a firm may invest in technology capabilities which both allow your firm to create vehicles with higher specifications, but also lower costs on the existing vehicles.
An estimate of the savings based on your current product portfolio and projected sales is provided on the technology capabilities input screen. It is essential that your firm considers the effectiveness of using these cost savings techniques in the context of your overall strategy.
Cost savings are a net positive whether it improves your profit margin or it is passed on to the customer in hopes of gaining more sales. Having the largest production capacity is only an effective cost savings if that capacity is used and sold.
Having a low cost vehicle is only effective if consumers still want to purchase it. Thus, the successful manager is always looking for ways to lower cost, but keeps an eye on whether that cost savings is ultimately rewarded on the bottom line.
How do you determine the Mfg price and margins after making technology investments? See the pro-forma product contribution.timberdesignmag.com: Stratsim: The Corporate Strategy Simulation Game () by Roger Evered and a great selection of similar New, Used and Collectible Books available now at great prices.
StratSim reflection. Written assessment of a minimum of three key learnings from the simulation 1. Learnings can be business, organization, team or personal 2. This is an individual effort based on three key learnings for the student.
P(2) Among other benefits, we guarantee. Free Essays on Stratsim Simulation Swot Analysisfirm e for students. Use our papers to help you with yours 1 - stratsim simulation marketing strategy I need a paper about 6 pages about StratSim Marketing Simulation Game.(1 pages for each decision period).
For this paper, we suppose to write: Recap of each period’s decision, what happened after our decision, how this decision affects our strategy. stratsim replied to stratsim's topic in Scenario and Maps There was a whole group of my APCs that had reached a forward pre-staging area and were no longer moving.
i went into the map and could not get them to move, either by clicking on their map icons, or by jumping to them and giving direct commands.
Todd Benschneider, Qingqi Meng, Jesse Rubin, Lisa Velesko, Xueying Zou. As the Stratsim Automobile Industry simulation began, the market was split equally into four firms A,B,D and our own firm C. Fortunately, we had increased the dealer profit margin as part of our marketing strategy, which offset a portion of the damage done by the.