Capsim Case Study Capsim
What is Capsim?
Capsim is a business simulation that has six companies to compete in the same sensor industry with equal starting points; all the six companies – Andrews, Baldwin, Chester, Digby, Erie, and Ferris- are identical to each other. Companies compete each other by making decisions in six departments: Research & Development, Marketing, Production, Finance, Human Research, and Total Quality Management. This competition has eight rounds in total.
Dilemma
In the industry, there are five segments: Traditional, Low End, High End, Performance (Pfmn), and Size. These segments are represented by circles in the perceptual map; the y-axis is the sensors’ size and the x-axis is performance. Each year, the circles are spreading out and moving …show more content…
Thus, we predicted that they might apply differentiator strategies with some adjustments; we continued to keep an eye on their products. Group E was aiming to dominate the market by selling at low prices and their strategy should be broad cost leadership. Group A’s strategy was not clear and their performance was not impressive as …show more content…
These two segments’ total units demanded are always higher than others and their total units increased each round are generally higher than the rest (Exhibit 1). Thus, starting with cost leadership and focusing on Low End and Traditional segments allowed us to generate high revenues and have a great potential to enter other segments based on the profit we earned from these two segments. In this phrase, we increased our automation level and capacity to not only take over the market and decrease the variable costs, but also to threat other companies from positioning new products to the market.
Phase 2: Adding Product lifecycle focus strategy By implementing the plan for cost leadership, Chester were able to achieve the highest market share of 20.9% in Round 1(Exhibit 4). However, we were unaware of the importance of collecting accounts receivable on time and we extended the collecting time from 30 days to 60 days in order to increase the customer demand. As a result, Chester run out of money and had to borrow the emergency loan, even though we had the highest sales (Round 1: Financial Summary of Capstone
Capsim is a business simulation that has six companies to compete in the same sensor industry with equal starting points; all the six companies – Andrews, Baldwin, Chester, Digby, Erie, and Ferris- are identical to each other. Companies compete each other by making decisions in six departments: Research & Development, Marketing, Production, Finance, Human Research, and Total Quality Management. This competition has eight rounds in total.
Dilemma
In the industry, there are five segments: Traditional, Low End, High End, Performance (Pfmn), and Size. These segments are represented by circles in the perceptual map; the y-axis is the sensors’ size and the x-axis is performance. Each year, the circles are spreading out and moving …show more content…
Thus, we predicted that they might apply differentiator strategies with some adjustments; we continued to keep an eye on their products. Group E was aiming to dominate the market by selling at low prices and their strategy should be broad cost leadership. Group A’s strategy was not clear and their performance was not impressive as …show more content…
These two segments’ total units demanded are always higher than others and their total units increased each round are generally higher than the rest (Exhibit 1). Thus, starting with cost leadership and focusing on Low End and Traditional segments allowed us to generate high revenues and have a great potential to enter other segments based on the profit we earned from these two segments. In this phrase, we increased our automation level and capacity to not only take over the market and decrease the variable costs, but also to threat other companies from positioning new products to the market.
Phase 2: Adding Product lifecycle focus strategy By implementing the plan for cost leadership, Chester were able to achieve the highest market share of 20.9% in Round 1(Exhibit 4). However, we were unaware of the importance of collecting accounts receivable on time and we extended the collecting time from 30 days to 60 days in order to increase the customer demand. As a result, Chester run out of money and had to borrow the emergency loan, even though we had the highest sales (Round 1: Financial Summary of Capstone