Author Topic: What determines whether you gain or lose Retail Dealers?  (Read 18350 times)

Eraserhead

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What determines whether you gain or lose Retail Dealers?
« on: February 12, 2013, 12:18:23 AM »
The help page is very vague on this.  It mentions PQ and promotions.  I'm working on Year 9 and been analyzing the market data for the past few years to try to find out how to gain retail dealers in the future.  We are currently in 2nd place with pretty good market share but we are not gaining dealers as fast as the first place team.  We actually lost some dealers in some of our regions from year 8-9.   

We lowered entry PQ from 2.5 to 2 to 1.5
We kept Multi-F PQ at 3, but could've gained market share by dropping to 2.5 or even 2.
Promotions on average around around 1/3/20.


Questions:
1.  Does PQ need to stay at a decent star rating to keep retail dealers?
2.  Does number of promotions have a large impact on gaining retail dealers?  (we are below ind. avg. on that, above on everything else)
3.  Would you recommend going to 2 stars to have one of the lowest prices on multi-feature cameras?  (for long-term strategy)
4.  Do you personally recommend high mid or low R&D investment for the long term?


Note:  I'm kind of wondering if drastically changing PQ from high to low, low to high, every around could be very effective or not.  (assuming you can kind of gain dealers, lose dealers, but keep the same average)

Any input if of course appreciated.  I am trying to understand the games algorithms the best I can so I can properly react to the industry, I know each strategy will depend on your competitors.



Thanks  :)

WinBusinessStrategyGameTips

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Re: What determines whether you gain or lose Retail Dealers?
« Reply #1 on: February 12, 2013, 12:44:29 AM »
When I saw your question, I thought to myself well this is rather interesting.

How you should view retailers, is actually the base acid test if whether or not your strategy is working. If retailers are coming to you, then your strategy is successful, if retailers are leaving, then your strategy is weak.

1) Yes, a common mistake is having people low ball their quality to gain net profit, to only lose further net profits in teh future.
2) It does, but in a very minor way.
3) You won't get high retailers, but I normally finish at 2 stars for MF cams and win the game.
4) If you can afford it, RnD is what gives companies a large advantage in the late game.

Changing your quality every round, only shows indecision, and your company will only pay for that kind of play.
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Eraserhead

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Re: What determines whether you gain or lose Retail Dealers?
« Reply #2 on: February 12, 2013, 01:17:12 AM »
Its tough for me decide between upping MF PQ to 3.5 or 4 and losing market share short term or to gain market share and keep good scores for year 9 results. 

To gain MF market share we need to lower the cost.  What do you often use for operating profit on MF cameras?  I've been trying to do around 100, but as the industry gets more competitive I'm looking to drop it to 80.  I'm curious what you like to use for a baseline. 

I'll be experimenting a lot with this round

WinBusinessStrategyGameTips

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Re: What determines whether you gain or lose Retail Dealers?
« Reply #3 on: February 12, 2013, 10:55:42 AM »
I don't view things in terms of operating profit. I see many companies, some people who put their MF quality at .5 PQ for years and have nothing going for them. You just have to swallow a bad round, and build up credibility in the market place again.
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Eraserhead

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Re: What determines whether you gain or lose Retail Dealers?
« Reply #4 on: February 12, 2013, 02:39:16 PM »
ya thats what I was thinking.  Do have any comment on whether I should hit 3.5 or 4 or 4.5 stars on my MF camera.  I'm looking at the 4.5 option because I was my entry camera to stay competitive at 1.5 stars and dont it being very success full at 2 stars unless i lower the marketing costs by a big margin.

WinBusinessStrategyGameTips

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Re: What determines whether you gain or lose Retail Dealers?
« Reply #5 on: February 15, 2013, 02:31:10 AM »
Without looking into your game, it is unclear what quality your company could handle going forward. You should consider having me look at your game.
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Eraserhead

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Re: What determines whether you gain or lose Retail Dealers?
« Reply #6 on: February 15, 2013, 08:02:37 PM »
If you'd like to look at the quarterly snapshots I could email them to you.  In yeat 8 ind avg for MF PQ is 3.2 with 2 cameras at 4. 

The 2 companies gaining the most local dealers have 6 and 6.5 combined PQ and both gained 945 in each segment.  This is interesting to me because it makes it seem like 945 is the cap, and both of those companies have met the requirement.  I would guess that the requirement to gain 945 is based on Ind. averages.  I am curious if the top 2  I will learn more about this each round as I get more data.

Do you know if Price is a deciding factor?
Also should I email you?

And thanks, I like discussing strategy.  Even though each game is different it helps to get a perspective from someone who has been through each round.

WinBusinessStrategyGameTips

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Re: What determines whether you gain or lose Retail Dealers?
« Reply #7 on: February 16, 2013, 12:46:57 PM »
This forum is for general information and quests on the game. For company specific situations, it goes into a customized personal review, which is better to have not posted on the forum.
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glober

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Re: What determines whether you gain or lose Retail Dealers?
« Reply #8 on: March 01, 2013, 11:12:22 PM »
I've been comparing numbers for hours.  I'm in first place in year 8 with a 105+ overall score, but I'm losing retailers at an alarming rate in every region!  Why?  There seems to be no rhyme or reason to why a company gains or losses retailers.  Are retailers directly related to market share?  Please help I can't figure this out.


WinBusinessStrategyGameTips

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Re: What determines whether you gain or lose Retail Dealers?
« Reply #9 on: March 02, 2013, 03:52:27 AM »
Retailers do relate to market share, but they cause market share to increase or decrease.

Therefore this is the order things must be done.

1) Create a good strategy given the conditions of the Industry (which I explain in my guide my processes on doing this on every screen)
2) See if retailers go up or down, if they go up, the market likes your strategy, and if they go down. It doesn't.
3) The number of retailers allows you to increase/decrease market share.

If you are losing retailers and you are playing Glo-Bus, it is only given time, that someone else will surpass you in points. You don't win games by having a low amount of retailers.
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.

glober

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Re: What determines whether you gain or lose Retail Dealers?
« Reply #10 on: March 02, 2013, 10:36:56 AM »
I greatly appreciate the response.  I realize retailers are important that.  I'm trying to understand how to obtain them.  Does anyone have any thoughts on this?