Glo-Bus Competition Results
Feb 24
My marketing course made use of an online simulation which allowed students to form groups and operate a digital camera business. The inputs that were available to students included product parameters, marketing parameters, financial parameters and so on. My co-manager and I decided we would adopt a high quality, high margin strategy and go for low market share but focus on the high end customers. Unfortunately the algorithm didn’t accommodate this approach. It should have been obvious by year 8 in the simulation, but we persisted to see if there would be a cumulative effect that would reward the high quality approach. After year eight we could see that the simulation algorithm would not work with our strategy. We also noticed that the groups in the lead were focused almost exclusively on increasing market share. Despite low margins, they were making good profits based on large volume of sales. We changed our strategy in year nine. In the following three years we focused much more on market share by reducing our margins, especially in the entry level camera market. In year 11 we returned some focus to our camera quality, which slowed our growth somewhat. By this time our competitor’s growth had stagnated. Trending for the last three years showed that we would surpass the leader within another four years. Here’s a presentation that walks through our strategy and some key metrics from the...
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