What was your strategy for each of the decisions entered into the simulation game in Quarters 1 12?
This market simulation strategy focused on developing the right strategies that the business can implement in order to have control over the market. Furthermore, market simulation strategies enable businesses to become more competitive as they know which of the strategies they need to apply at a given point in time in order to take advantage of emerging market opportunities as well as edging out extreme competition from the market. This simulation program focused on controlling market segments in which the business had operations, whereby the business was in a position to know which of its customers occupy a given market segment. In fact, through this simulation program, the companies were able to get the right statistics about the sizes of both large and small customers, and the percentages of the market they hold. Incidentally, this simulation program enabled the company to come up with strategies of managing its customers as well as its market share (Forgang, 2004).
Managing a customer or a large pool of consumer clientele is not an easy task especially owing to the diverse nature of human needs and wants. As such, the companies have to evaluate the tastes and preferences of consumers in each market segment in order to come up with the best strategies to conquer their needs and demands for goods and services, preferably, from what the company offers. Therefore, the simulation program advances systematically from the first question all the way to the last 12th question. Company's analysts have to make use of different market strategies and approaches in order to derive significant results from the simulation programs. Incidentally, they have to use a number of strategies some on their own while others in combination in order to achieve the best and most successful business practices. The company adjusted each business strategy according to the market scenario that they encountered as provided by each question (Kim & Mauborgne, 2005).
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One of the strategies that the company applied under each market simulation was the brand image of the organization. A reputable brand image works best at attracting new customers to the business while retaining the loyal ones. As such, a company that has a reputable brand image is attractive in terms of both its products and services. Another strategy that the company used was pricing. Price of products and services is the major determinant of the ability of the company to sell. Companies that charge high prices for their products and services, and thus are considered expensive according to market, miss customers and clients. Other strategies incorporated into the market simulation strategies include advertising decisions and decisions dealing with the management of the sales force. Sales force management is another strategy that is necessary in a market simulation whereby the company comes up with plans on expanding its sales volume and market share. Other strategies used in the market simulation program include media placement, the process of distribution, brand design, advertisement copy design as well as emerging market opportunities within business circles (Kostantopoulo & Sakas, 2010).
What changes did you make in your strategy as the game progressed?
The business began with using pricing strategy to convince consumers in different market segments to purchase its products and services. The more the business made changes in the prices of its products, the more it changed its market share size. More and more customers turned into the products offered by the company attracted by their lucrative prices. Furthermore, the company was in a position to attract new customers in the market who were using products from competing firms to using their products. It also managed to retain its old or existing customers to continue using their products. The pricing strategy developed a special kind of uniqueness for the products and services produced by the company that is necessary in selling off to consumers. Consequently, the business grew in competitive advantages against its competitors largely because of this new factor of price control and change. However, this was not a long-term strategy as other competitors also adopted the strategy and manipulated their prices in order to maintain their market share as well as to retain their loyal customers (Forgang, 2004).
The company had to change its strategy to the next option that would bring more revenues from sales as well as expand its market control. Advertising was the strategy chosen to replace pricing. Advertising entailed setting up marketing mix strategies that promoted the products sold by the company. It entailed an intensive promotional campaign, which involved major activities such as media broadcasting, posting advertisements on print media, billboards, sales promotion and many more. The company employed a consistent marketing mix strategy that included all the functions of marketing such as publicity, sales promotion, and personal selling. This strategy also incorporated the use of integrated marketing communication strategies in order to enhance proper flow of information from the company to their targeted consumers, and the necessary feedback for the company to adjust its products and continue having more customers. An extensive awareness campaign launched by the company eventually resulted in substantial growth in market share control and sales volumes that the company recorded in a given financial period (Kim & Mauborgne, 2005).
Consistent advertising is the best way of getting the products embedded into the minds of consumers for a long period, and thus maintains a continuous market presence for the company as well as for its products. Once a consumer can easily identify a company or its products from a given advert on radio, television, or print media, then the company is assured of continuous sales as long as it maintains the quality of its products and continues to give its consumers the value for their money. However, in order to consolidate the market share control further, the company had to incorporate other strategies into the market simulation program. These last strategies would propel it the top and ensure it continues massive sales over time, for instance, creating a competitive advantage over its competitors. This involved incorporation of new strategies such as media selection and placement and distribution (Kostantopoulo & Sakas, 2010).
What were the results of your decisions?
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The results of each decision were phenomenal. The moment the company made a change in a given market strategy used in the simulation, it recorded significant changes that brought great profits to the company. Each strategy was good for a given time until adopted by competing firms or outrunning its usefulness. For instance, the first strategy applied by the company of pricing was particularly instrumental in attracting new customers to purchase the products from the company. In addition, it enabled the company to take over and control certain market segments, particularly those occupied by large customers. The application of each market simulation strategy always bore significant changes in the company in terms of control of market segments and management of customers. The use of prices as a simulation strategy attracted so many customers for the company. It increased its customer base as more and more customers who were using products from competing firms changed base and began using their products. In addition, it also enabled the company to consolidate its market share by increasing its number of loyal customers as it managed to earn the trust and confidence of its customers (Forgang, 2004).
However, since using pricing strategy is not exclusive to any firm, other companies copied the strategy in order to share the spoils of the company. This diminished earnings that the company was making because of adopting this new strategy. Nonetheless, when the company shifted to using another strategy alongside the pricing strategy, the good tides of profitability and expanded sales volumes of the company returned. The company was in a better position to consolidate its market share as well as maintain the strides it had already made using the pricing strategy. Advertising came in as an awareness campaign for the products of the company, thereby leading to more and more customers knowing of their existence. The more customers knew about the products from the company, as well as discovered its uniqueness in pricing, the more they shifted quarters from using products from other competing firms to using products from the company. This continued the good tide that the company was previously enjoying after it began using market simulation strategies in controlling its market shares as well as its consumers (Kim & Mauborgne, 2005).
In general, the more the company changed old market simulation strategies to adopt new ones, the more the company consolidated its control on its market shares as well as control over its customers. The company was able to increase its sales volume with every strategy that it adopted and as a result expand its market share. This also enabled the company to stay ahead of competition as it managed to develop specific competitive advantages that put it a step ahead of its fellow industry players. This was majorly because of the uniqueness of the products of the company generated through the adoption of several recurrent market simulation strategies. It was apparent to the management of the company that adoption of market simulation strategies led to the growth and development of the company, especially in terms of its customer base and market share control (Kostantopoulo & Sakas, 2010).
Analysis of the Results In Terms Of Success or Failure
The results of each simulation strategy adopted by the company led to great success on its part. The more strategies the company incorporated in its simulation programs, the more customers it managed to bring over to its side. This resulted in more sales, and consequently more income and revenue. The use of simulation strategies was evidently successful for this company because it managed to contain its market share by a large fraction as well as provide its customers in each market segment with their specific preferences. This enabled the company to consolidate its market share by attracting new customers from competing firms and those undecided in the market, and to retain its existing customers as loyal consumers of the companys brand and products. Existing customers of the company managed to develop more confidence and trust into the products of the company as well as its brand due to the uniqueness that the company achieved using new market simulation strategies (Forgang, 2004).
Not only did the use of these market strategies enable the company to consolidate its market share as well as satisfy completely the tastes and preferences of its customers, these market simulation strategies also managed to enable the company to develop a competitive advantage of its products and its brand. Using these strategies makes the company and its products more and more attractive to the customers in a given market. As such, the strategies provide the company with uniqueness and a special appeal that attracts customers in these markets to turn from using products from another company to specifically using products from the company. This is what creates competitive advantage for the company against its competitors as they prefer purchasing and consuming its products rather than using the products and services from another company present in the market (Kim & Mauborgne, 2005).
Consequently, it was beneficial for the company to use market simulation strategies to control its market spheres as well as its customers. The company managed to control its customers by studying and analyzing its consumers tastes and preferences, their likes and dislikes as well as their purchasing habits and purchasing power. This information is critical in enabling the company to formulate proper marketing strategies that would enable it to capture a considerable market share as well as completely satisfy its customers. As such, the more these customers feel satisfied by using products from a particular company, the more a company sales volumes and revenue the company records (Kostantopoulo & Sakas, 2010).
If you were to manage this firm, after doing this simulation what decisions would you make that would help to ensure success?
These market simulation strategies enable the management team of the company to come up with meaningful decisions that change the tides of the company from making dismal returns to recording massive profitability. As such, as a manager of the company, I would implement most of the strategies adopted by the company analysts during the market simulation strategies. These strategies would definitely enable the company to maintain a successful stream of income over the years because it assists the company to identify the needs, tastes, and preferences of its consumers. As such, the company is in a better position to satisfy the needs of its customers continuously and as such guarantee consistent sales revenues and massive volumes (Forgang, 2004). For instance, the adoption of a pricing strategy definitely gets the company a significant number of customers as well as expands its market share. In addition to this, it also creates competitive advantages for the company, which puts it in a position to wade of competition for a long time, thus maximizes its sales volume (Kim & Mauborgne, 2005). Therefore, it is advisable for company executives to conduct market simulation strategies in order to identify the variables that they can moderate or twist in order to control their customers and market share. Control of the spoils from the market is the best way for a company to improve its position to take advantage of emerging market opportunities and overcome unforeseen challenges that may arise (Kostantopoulo & Sakas, 2010).