broad differentiation strategy capsim

This improves the position of the product, making it more appealing to our customers. Products keep pace with the market, offering improved size and performance. There are six basic team strategies listed on page 24 in the Capstone Team Member Guide 2012. Dixie - Improve positioning and reduce age. R & D Round 1 . Even though High, Size and Performance sell fewer units these segments sell at higher prices. We will gain a competitive advantage by distinguishing our products with an excellent design, high awareness, and easy accessibility. We will finance our investments primarily through stock issues and cash from operations, supplementing with bond offerings on an as needed basis. In the Traditional and Low End segments the age of the product can be older. Example: Increase Daze ' s performance by 0.8 and reduce size by 1.0. Currently my team is doing Niche Cost Leader (for practice rounds) but finding it very difficult and wondering if we should switch when the real simulation starts. The computer will automatically give a company a BIG AL LOAN and the vig (interest) is 7.5%. We have six teams in the simulation: Andrews, Baldwin, Chester, Digby, Erie and Ferris. In order to achieve the broad differentiator strategy, a new product was introduced in the high segment i.e. Erie should keep their revision dates before July 1 of the current round. All five segments: Traditional, Low, High, Performance and Size equals 100%. Andrews has decided to adopt features from several different basic strategies to form our own hybrid strategy. Capsim Strategic Management Simulation: First Place. In the computer simulation I would recommend not to buy back stock unless your company has a great over surplus of funds. The prices of products are reduced by $0.50 each year. Chester’s performance product is Coat. In the Marketing Module Erie must improve the price of segment products round by round. These strategies are Broad Cost Leader; Broad Differentiation; Niche Cost Leader (Low Technology); Niche Differentiation (High Technology); Cost Leader with Product Lifecycle Focus and Differentiation with Product Lifecycle Focus. Let’s take the Traditional segment which has industry unit sales of 7,387,000 units or 32.4% of the market in round zero. We are somewhat adverse to debt, and prefer to avoid interest payments. Broad Differentiation. I usually go for broad differentiation because it is more flexible. Our primary stakeholders are customers, stockholders, management, and employees. We will attempt to differentiate our product line … CAPSIM-Team Ferris Nikita Motkur, Howie Hehrer, Cori Porasik, Priscilla Gonzalez & Neha Noonemunthala December 8, 2016- BUS 6990 Strategy Formulation and Org. SHAREHOLDER MEETING 3. Follow the decision guidelines below unless directed otherwise by your instructor. Hold reliability (MTBF) steady. CAPSIM PRESENTATION-TEAM FERRIS 1. Nothing personal, chumps! Fire. Mission Premium products … This practice exercise will help you understand the relationships between business strategy, tactics, functional alignment, and the Capstone® simulation. We expect to keep assets/equity (leverage) between 1.5 and 2.0. capsim report 4555 Words | 19 Pages. Best strategy for Capsim? The Digby team will spend aggressively in promotion and sales in both segments. Broad Differentiation Strategy is quite unique and brings about many Examples. 16.4 Digby - Broad Differentiation. Competitive advantage is gained by distinguishing products with an excellent design, high awareness, and easy accessibility. Daze - Slightly reduce reliability (MTBF) to … This will help each company develop a strategy for the competition. © 1985 - 2011 Capsim Management Simulations, Inc. 16.1 Andrews - Cost Leader with a Product Lifecycle Focus, 16.2 Baldwin - Differentiation with a Product Lifecycle Focus. In the real world companies buy back stock. Dot - Improve positioning and reduce age. After our products are well positioned, we will investigate modest increases in automation levels to improve margins, but never at the expense of our ability to reposition products and keep up with segments as they move across the perceptual map. Our goal is to offer customers products that match their ideal criteria for positioning, age, and reliability. Examp… The Digby computer team will maintain a presence in both segments of the market. This makes it easier to adjust to what the other companies are doing. These revisions change the Age at Revision for each segment. Each Industry segment makes up a percent of the market. Under the Unit Sales Forecast is the Inventory on Hand. Explanation: Broad Differentiation strategy refers to building a business or a brand that differs significantly from that of the competitor. This is a competition and Erie has to adjust to the marketplace. In this manner Erie will have a better product then most of the other companies for the second half of each round (year). After the practice rounds, you are free to pursue any strategy you wish, and can abandon the Broad Differentiation strategy entirely. The Human Resources Module will be added in the third round. Ideal Automation Rates and New Products Broad Differentiation Strategy I have read so many different automation strategies and would like to know with reasons which is best. CAPSIM ANALYSIS: FERRIS 14 700 by the end of Round 8 with a plant utilization of 184%. Erie should divide the 7,387,000 units by 6 and make a prediction that Erie will sell approximately 1,231,167 units. Improve reliability (MTBF) to enhance demand. This Broad Differentiation Strategy only works if Erie compares its segment products to the other teams’ products and adjusts pricing, promotion and sales. Premium products for the industry: our brands withstand the tests of time. Erie Company has to implement a plan to upgrade the performance, size and Mean Time before Failure (MTBF) of its products. The main objective of implementing a differentiation strategy is to increase competitive advantage. 1. Broad Differentiation. Erie must check in the Capstone Courier to see which teams are automating. When the round is complete Erie can compare the segment performance and size coordinates with the other companies’ segments in the Capstone Courier. Access The Broad Differentiation Sample. Hold reliability (MTBF) steady. In order for this strategy to work a company has to be aware of what the competition is doing every round. Erie does this calculation for the rest of the segment products: Low-Ebb, High-Echo, Performance-Ebb and Size-Egg. In the Workforce complement a second shift is not added until the first shift reaches its needed complement. Erie must make a comparison to see what the other companies are promoting. In the Capsim simulation course at Georgian Court University, Lakewood, NJ in summer session 2012, there are six companies are: Andrews, Baldwin, Chester, Digby, Eire and Ferris (Computer). As the game progresses, you can change it to a hybrid of broad differentiation. Hence an innovative strategy is highly recommended in order to achieve high business growth, in case you are willing to expose you to a higher degree of risk. Although the Capstone Team Member Guide recommends a 30% contribution margin in each segment, this is very hard to accomplish during competitive rounds. Differentiation Strategy with a Product Life Cycle Focus. The first customer buying criterion is reliability (measured in hours) as Mean Time Before Failure (MTBF) rated importance of 43%. Competitive advantage is gained by distinguishing products with an excellent design, high awareness, and easy accessibility. Note that Erie may be able to charge a better price for the High-End, Performance and Size products but the Traditional and Low-End products have to have a more modest price. Erie must adjust the Production Schedule for Traditional-Eat to equal 1,231,161 units. In the Production Margins Area we have listed the total unit cost and contribution margins. Hold reliability (MTBF) steady. Executive Summary The Digby team will adopt a Broad Differentiation strategy, maintaining a presence in every segment. In the Physical Plant Section, Erie wants to make sure they have enough 1st shift capacity not to pay overtime to employees. Enjoy! But more important and effective than this is how Nike makes its customers feel. The Digby computer team will adopt a Broad Differentiation strategy, maintaining a presence in every segment. The industry simulation is the sensor industry. One basic strategy is Broad Differentiation. The first round ends December 31, 2013. When you sell stock in the marketplace this will decreases the price per share of your company’s stock. Less stock on the open market will increase the price per share of the company’s stock. opportunity for success, as they enable a company to create a competitive advantage by having differentiated products, services or business models. It's a strategy that works better for larger companies than smaller ones. We shall use team Erie as an example. The only way to improve your company’s performance is to analyze what the other teams are doing each round and make adjustments for all modules. CHANGING STRATEGIES TO MAKE BETTER PRODUCTS• Original Strategy: • Cost Leadership • Differentiation Strategy• New Strategy • Focus Cost Leadership Strategy • Differentiation Strategy 4. Our team's original strategy was broad differentiation. Prices are above average. 12.4 Broad Differentiation. Fire was able to produce sales for 1,235 units with its capacity of 14. R&D competency is developed that keeps designs fresh and exciting. Automation costs money but a small increase in automation, 0.3 per year may be enough to stay competitive. We will price at a premium. Note that the highest to lowest market share in units in the competition is Low End, Traditional, High End, Size and Performance. Capacity is expanded as higher demand is generated. • Strategy – Broad Differentiation • Presence in every segment (check) • Excellent design (5 of 5 segments) ... not what our strategy was. Daze - Improve positioning and reduce age. We will develop an R&D competency that keeps our designs fresh and exciting. In the Production Module Schedule the sales forecast carries over to the Unit Sales Forecast. We will keep our existing product line, and introduce at least one more line, maintaining a presence in both segments. It is best for Erie to price products at a mid-range in order to be competitive. When a company pays back bonds the company’s S&P rating will improve. In the High End, Performance and Size segments customers want new and better products. Erie keys off of the Industry Conditions Report Performance and Size Centers for each round listed for the following segments: Traditional-Eat; Low End-Ebb; High End-Echo; Performance-Edge and Size-Eat. A rule of thumb is to keep the contribution margin above 25%. The industry simulation is the sensor industry. It is essential in most companies and have exemplary impact on consumers, thus a good remedy for the Capsim. We will grow capacity to meet the demand that we generate, avoiding second shift/overtime when possible. When our cash position allows, we will establish a dividend policy and begin to retire stock. As a broad differentiator in the market, the performance segment focuses on the reliability and ideal position of the product. Firm Profile: Multiple product lines in targeted segments (High End, Traditional, and Low End) Minimum focus in other segments The first round ends December 31, 2013. We want every customer to know about our superb designs, and we want to make our products easy for customers to find. In this case, I mean making adjustments, especially on thrift segment, to sell at a lower price than the industrial average to maximize your market share. Choose COMPXM strategy . Example: No change required. Erie makes improvements for each product to beat the competition in all five segments for the next round. CAPSIM - Winner Presentation (An example of utter dominance) Here is the presentation of my CAPSIM simulation team (Team Baldwin), in which we mercilessly destroyed, decimated, and demoralized our competitors into oblivion! We chose broad differentiation as a a strategy. A differentiation strategy is an approach businesses develop by providing customers with something unique, different and distinct from items their competitors may offer in the marketplace. In the Pro Forma Income Statement make sure each product has a net profit. (During the practice rounds, each company is assigned a different strategy.) Moreover, the company will gain a competitive advantage by distinguishing products with an excellent design, high awareness and easy accessibility. Let us begin with the Research and Development Module. Our original strategy had failing results and our team placed last at the end of the first round. Capsim Simulation Broad Differentiation Strategy. Erie may be able to increase the contribution margin in some of the other segments but an average of 25% contribution margin in all segments is pretty good. There are actual market share units listed in the Capstone Courier. The promotion and sales budgets should be in the mid pricing range. • Have a pre-grade option that would allow teams to send in their decisions to CAPSIM for a review and recommendations before official submit. CAPSIM SIMULATION WINNERS!BY: MINHEE HUH, MOLLY MCGOWAN, AND KING TAN 2. Capsim Team Strategy Report Our team decided to choose the “Broad Differentiation” strategy as the basic strategy for our company. The teams played two practice rounds before beginning the actual competition. At the end of the round, Erie can do a comparison price check against the other companies’ products in the Capstone Courier. We simulated developing silicon wafers for 6 rounds representing 6 years. James Cage (author) from Orlando, FL on November 15, 2013. A Differentiation Strategy with a Product Life Cycle Focus seeks to be known far and wide as the top producer of the best performing state-of-the-art products. In the practice rounds the individual companies get an idea of the strategy performed by the other teams and the computer team Ferris. Broad Differentiation Capsim. Wondering what the easiest strategy is for Capsim and why. We will use the Digby team for this example. It received a market share 15% within 3 rounds of execution.

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