Author Topic: Maximizing Market Share  (Read 6068 times)

DiscoLemonade

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Maximizing Market Share
« on: September 22, 2011, 09:40:48 AM »
I am currently active in Glo-Bus and decisions for Year 6 are due today.  I have been doing quite a bit of research and have come to some conclusions...

While researching strategies of top competitors in Glo-Bus' history, I have found that many of them have sacrificed their performance in the scoring measures to maximize market share early on in the first couple years.  Playing around with all the inputs, I can easily maximize EPS, ROE, profit, etc. to the extent of achieving the status of a top performer at least for the current year.  However, I'm wondering if it is indeed advantageous to sacrifice these measures to increase market share.  Is it worth it? Does the increase in market share early on pay off down the road when I can focus more on the scoring measures?

Any assistance would be greatly appreciated. Thank you.

WinBusinessStrategyGameTips

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Re: Maximizing Market Share
« Reply #1 on: September 22, 2011, 11:33:41 AM »
Hmm, this is an interesting question. There is some truth to the possibility of being a lower ranked company in the initial years, and rise up. In the games of Glo-Bus I play, often I can get first immediately, which is of course a good sign. But sometimes, it is slightly lower, we are talking second or third. And very quickly I rise up to first in the years following, 7 or 8.

Strategies take time to develop and market share becomes even stronger with time if it is attained well.

However, sometimes people for some bizzare reason like to say something like "Our team's strategy is to do poorly for the first couple of years, and then do great at the end". This is taking it to the extreme, if you are a good 20 points below the first team by the end of the mid game, most likely you will not win. You need to have some things going for you at the start, and realistically, you should be able to attain top marks in the early game as the preliminary procedure in winning the late game.

To answer your question precisely, strategies that are able to maintain and grow market share in the early game are very resilient in the late game, however these strategies do not actually detract too much from the early game.
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