Later, it was determined as AP and LA were targeted, with lower prices, high market share growth could be achieved in those countries, while still growing in NA and EA, as illustrated in the market share charts of Appendix A.

O Region- NA and EA were targets, while lower market share existed in AP and LA. Targeted user sought a low end camera for a low end cost. Users wanted a low price camera with minimal features and low spending on core components. O Demographic- A mass marketing campaign was taken with high retail coverage.

Sweet spots were found in the right upper corner, for entry level, and lower left for the multi-feature and maintained through our the simulation (See perceptual maps in Appendix A). Our goal was to stay on the right side of the perceptual map, for both cameras, occupying uncharted spaces by other firms. In both cameras the target market fluctuated from concentration in North America and Europe, to more of a mass market targeting, with concentration in Asia Pacific and Latin America. This lead to the lowest production cost in the industry.Īmalgamated Holdings target market shifted as the simulation progressed. To outsource all extra camera productions, yielding no overtime or hiring of temporary workers. Maximize labor cost to ensure higher than industry salaries, incentives and training Maximize production for both cameras, by 10%, in order to assure no shortage of cameras in retail inventory (see associated financial graphs in Appendix A) Grow Revenues, EPS, ROE, Image rating, Stock Price and Credit Rating enough to withstand a competitive market. Keep the same position, in relations to competitors moves, adjusting prices and P/Q ratings accordingly To remain stable and consistent through out the simulationīe consistent with decision making, never increasing or decreasing decisions one way or the otherĭo an external analysis of competitors moves, before determining ours Maximize retail representation in all three avenues Maintain a higher Image Rating than competitors Remain market leader in every country for Entry-level camera, while growing market share in Multi-feature cameras Increase market share in AP and LA where sales are weaker O High per unit spending on core components This was achieved by offering a differentiated, high end multi-feature camera, offset by a low cost leader entry-level camera. In order to offset the cost structure of the multi-feature camera, a low cost structure for the entry-level camera was implemented. Our overall objective was to determine the correct mix and balance of camera components, which enabled the most favorable outcome in the competitive arena. A clear strategic plan was set out in the beginning, and adhered to throughout the course of the simulation.

How to do globus simulation decision