Capsim business plan example

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If it becomes clear that another company is directly competing with us on a hightech differentiation strategy, we can adjust the prices, sizes, and mean times between failures of our products accordingly to gain more of the market share. Simultaneously allow older model products to drift into the low-tech market segment; through aging and targeted pricing these products allow Baldwin to capture a significant Low-tech niche. Products will be in line with the market needs, presenting enhanced performance and size. MGT Neil Tocher Meredith Ellis Lynette Wharton David Westacott Roxanne Christy Since our primary focus will be on the high-end, performance, and size segments, minimal focus will be given to the traditional and low-end market segments. Production: Since our products will be continually repositioned to remain competitive as a highend differentiator, our company will not be investing heavily in automation or production capacity. Average Asset Turnover 5. This will be done through excellent design, easy accessibility, and high awareness during first half. Monitoring and responding to the price of competing products will diminish the threat of substitute products. Ideally we will be revisiting our status every year for the next four years to determine whether promotion and sales budgets should be sized or if the company will continue matching that of competitors.

Our team has chosen this strategy to take advantage of the high tech markets and the customers who desire higher performing products.

The Environment The business environment in the simulation is unique because everybody starts at the same place. Generally our company will offer products at reduced prices. Customer buying criteria will be continually monitored as well to ensure that our focus products are meeting the requirements of customers.

capsim strategy report

Functional Strategies The simulation consists of four functional activities: research and development, marketing, production, and finance. A minimum amount of automation will allow our firm to quickly respond to customer expectations enabling our firm to remain competitive against other products. To achieve this goal Baldwin has created a number of strategic steps: Focus on creating cleverly designed marketing campaigns Target and capture niche markets Creating new products that are the quality and price required to dominate the High-tech market.

We will endeavor to ensure a competitive edge by differentiating our products. Also company product lifecycle concentration will enable us to reap sales for the next four years on each of the four new products to be introduced into High end section.

In exchange for the premium price, our main objective will be to meet the buying criteria of our customers and satisfy their expectations which will result in customer loyalty.

Capsim business plan example

We believe the other companies competing in the simulation are going to choose varying strategies so it would be best to choose one that we feel fairly comfortable with. Still, through careful research of top competitors, Baldwin has discovered the following: Top Three Current Competitors. We will need to monitor sales on our products, especially those in the high-end, size, and performance markets. For example, if several other teams are employing a high-end focus differentiation strategy, it will be more difficult for us to compete in this market segment. Therefore the primary products our company will be focusing on are Cid, Coat, and Cure which compete in the high-end, performance, and size market segments respectively. These competitors challenge Baldwin through their talent, position and influence on the market. Customer buying criteria will be continually monitored as well to ensure that our focus products are meeting the requirements of customers. If it becomes clear that another company is directly competing with us on a hightech differentiation strategy, we can adjust the prices, sizes, and mean times between failures of our products accordingly to gain more of the market share. Chester will also be monitoring the growth rate of each focus product. By offering high quality products with a broad base of loyal customers, we hope to create high entry barriers to new entrants. Our team has chosen this strategy to take advantage of the high tech markets and the customers who desire higher performing products. During the first half the company will finance its investments mainly through bond issues supplementing with stock offers following an as needed basis. Production: Since our products will be continually repositioned to remain competitive as a highend differentiator, our company will not be investing heavily in automation or production capacity.

We will maintain competitive price, size, and reliability measures with our competitors, and gain the most market share we can within the high-tech, size, and performance segments.

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Capsim Business Plan Example