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LINKS Marketing Strategy Simulation Game

Reflection on the game and applied strategy

Written by J. Danielmeyer

Paper category

Essay

Subject

Business Administration>Management

Year

2020

Abstract

Simulation Game Term Paper: Game preparation and strategy In order to prepare for the game properly, it is necessary to study the LINKS Student Handbook. In addition to reading the main sections and writing down possible actions, you must also develop an overall strategy. Because the actions of competitors have such a huge impact, business-level strategies must be applied to differentiate between a company’s position and the position of its competitors (Porter 1985). The overall goal is to successfully establish a specific competitive advantage (cost/price or uniqueness) within the scope of the competition (wide or narrow target). The different implementations of similar business-level strategies show that companies are different from each other (Reitzig & Puranam 2009). In order to successfully archive a strategic fit, it is necessary to represent the degree of consistency of the goals of the different functions of the entire company (Porter, 1996). For a given scenario, the appropriate business-level strategy is: 1. Cost leadership strategy (huge value with low prices, such as through economies of scale), 2. Differentiation strategy (differentiation from competitors, such as unique products Configuration), 3. Focus strategy (focus on using the needs of specific industry market segments and exclude other market segments) and 4. Comprehensive cost leadership/differentiation strategy (sell differentiated products at low prices to some extent) ( Volberda Morgan, Reinmoeller, Ireland & Hoskisson 2011). I personally expect that many companies will follow a cost leadership strategy, so I plan to push my team to turn to the counter strategy: differentiation strategy. If my expectations are correct, only a very small number of companies will follow a differentiation strategy, and the buyer’s bargaining power will be limited. As long as they think the product is satisfactory, they will continue to buy, even if the relative price rises (Casterella, Francis, Lewis & Walker 2004). 3. Competition goal The overall goal is to surpass direct competitors by the end of the 12th quarter and become the best evaluation (cumulative evaluation) company. In order to achieve this goal, especially short-term profitability, a strong liquidity financial foundation needs to be established. In this way, cost-intensive differentiation strategies can be implemented in terms of product development, R&D expenditure, and high-quality services. It is very attractive because of entering a new market, due to first-mover advantage, and another goal is to move as fast as possible. The final focus is to become an innovation leader by adapting products specifically to the needs of consumers. This also requires financial resources to cover expensive labeling research and expensive product reconfiguration, but it can also generate money (for example, through patent revenue). 5. The expected action during the game was successful, but since we left as many markets as we entered, our overall significant share did not increase. As competitors are very active (entering new markets), our assessment of the 5th quarter is only an average of 85.8. Before the start of the next quarter, it was announced that a new region from now on, Region 4 (Latin America) will be in the simulation. In addition to some small investments in production, marketing communications and services, we decided to test the new area and introduce our reconfigured Hyperware products to all three channels. We want to take advantage of the first mover and get as many obvious shares as possible. A higher mark share means more potential for loyal customers. The more loyal customers a company has, the lower the cost of the effort to generate demand. But since we are unable to conduct any labeling research before the labeling entries regarding customer preferences, we do not know how the market will react to our products. Fortunately, we have achieved very good results, and this is also because we are the only company that initially entered new markets through Hyperware products. So far, we have received the highest rating of 92.2. In addition to our first mover strategy, the sixth quarter is the result of our previous actions in product reconfiguration. Because if you change the product, you must pay royalties to competitors with similar product configurations. In this quarter, we received a total of US$2.5 million in royalty payments, which means high cash inflows and high profitability. At this point, our goal is to maintain this profitability and gain some more significant shares in order to continuously obtain good quarterly assessments. With these assessment figures, we have received another very important notice about changes in the external environment. Suddenly, all companies were able to produce three (rather than two) products, and the company itself could decide whether to configure it as a Hyper- or Metaware product (product 3 was initially configured as H11111). Fortunately, we conducted extensive market research to understand customer preferences in Region 4. Fortunately, we found what we wanted: the preferred raw materials for the Hyperware product category in Region 2 and Region 4 overlap. This is particularly good because we already have a Hyperware product to serve customers in regions 1 and 3. Based on the research, we came to the conclusion that product 3 was reconfigured from H11111 to H74311. According to this discovery, all regions and channels can provide the best product quality (adapt to their needs). At the same time, higher flexibility is possible because the production of product 1 and product 3 (both Hyperware products) may change the production capacity of 25,000 pieces. Since only product 1 or product 3 will be launched in each market, cost-intensive product cannibalization will not occur. Read Less