Author Topic: Very low market share for multi-featured cameras *worried*  (Read 4887 times)

jyt

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Very low market share for multi-featured cameras *worried*
« on: August 24, 2013, 04:02:45 AM »
Hi I'm playing glo-bus and its currently year 7.  Our group is struggling to find the optimal plan for multi-featured cameras this year.  Could you help me find an optimal solution to our group's problems?

Last year we didn't employ much of a strategy for pricing these cameras and left cameras at 380 (increase by $10 only) for 3 stars P/Q rating.  We got very high market share at 17% on average but our profit margins were very low.  To low in fact to continue like this.  Some of the smarter companies increased their prices to $560.  This year we've decided to copy them and increase our prices to $560, increase the number of models from 2-4 to increase market share , and increase our P/Q ratings from 3 to 3.5.  Our profits increase tidily but our market share drops to 13.2% for LA from 21.2%, 4.5% from 6.1% for AP, 7.1% from 12.2% from EA and 12.3% from 16.8% for NA.  These market share drops look very drastic and I'm worried that we're not doing more to increase market share for multi-featured cameras?

Tinkering with the numbers on the program any changes we make other than the current configuration seems to drop net profit very hard.  Even raising P/Q to 4.5 stars and raising prices to 800 seems to drop net profits + drop market share as well according to the projection since prices are too high to capture decent market share even though high costs of 4.5 stars requires us to increase price.  So I was wondering, do we stay with our current configuration maximising net profit for this year or do we raise P/Q or lower prices to maintain market share?  Please help.  Appreciate the responses guys.

WinBusinessStrategyGameTips

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Re: Very low market share for multi-featured cameras *worried*
« Reply #1 on: August 24, 2013, 04:17:58 AM »
You really should get someone to review your round.

Email me here for details. http://bsgtips.com/contact-us
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.