Author Topic: Large loss, large market share gain  (Read 3269 times)

energy2spare

  • Guest
Large loss, large market share gain
« on: November 16, 2016, 01:56:08 PM »
Hi,

We are working with Glo-Bus, starting year 6 through year 11. For year six, which was our first year, we followed the strategy guide by making a 2 and 4 star camera, investing in R&D and productivity. I noticed our cameras gained a half star each in Q4 of year 6, which I attribute to the image rating of 100 and R&D investment. However, we charged only $370 for the camera and so all of our financial numbers were crap (obviously). However, we quadruple market share in NA and double almost everywhere else. Resellers for next year almost doubled as well.

Our plan is to take the camera up to 5 stars, continue to invest in R&D and productivity and charge $550 for the 5 star camera. This is projected to lead to a $5 million loss for year 7. Do you think this is an acceptable strategy?

My plan for year 8 is to start cutting back R&D, invest in marketing and support and hopefully raise prices if market share is maintained. Does this sound reasonable?

WinBusinessStrategyGameTips

  • Administrator
  • Full Member
  • *****
  • Posts: 122
    • View Profile
    • BSGTips
Re: Large loss, large market share gain
« Reply #1 on: November 16, 2016, 02:28:08 PM »
The extra half star is due to RnD only.

Your strategy otherwise sounds decent. High quality strategies win late game.
For the most up to date support in winning The Business Strategy Game (BGS) and the Global Business Simulation Game (Glo-Bus) visit www.bsgtips.com and Contact the Grand Champion.

energy2spare

  • Guest
Re: Large loss, large market share gain
« Reply #2 on: November 16, 2016, 03:35:13 PM »
Thank you, and thanks for the guide you wrote, it helped tremendously! I will report back the results. I noticed a lot of companies lost market share (some quite a bit) while we grew at a high rate. The only company close in market share had a cheap camera with long warranty and high support costs. Sounds like a short term strategy, we shall see.