Simulation Analysis Report
Brittany Giannini
Erie
C45199
Section 014
(Simulation Analysis Report)
BIC is a product that has been extremely successful, offering items such as a low-cost disposable razor, and pens that add value to the user at an affordable price. BIC uses a strategy similar to the Niche Cost Leader Strategy. The Niche Cost Leader Strategy puts the main focus on positioning a product at an affordable price while still presenting value to its customers. My reasoning for using this strategy is that my products will be extremely useful and beneficial to its consumers; products like BIC and McDonalds are in extreme demand with the situation of today’s economy. To maintain this strategy, I will keep the costs that go into the products low. Costs such as Research and Design, materials, and production serve as an important factor in the pricing of Erie’s products. As you continue reading, you will see my strategy unfold, the obstacles that I have faced, and the improvements that I will be developing in the near future. Although I chose Niche Cost Leadership with reasoning, executing the strategy and making it happen was much more challenging. I did not seem to have a good understanding on the program itself, or my strategy; I did not comprehend exactly how to change my traditional product to low end, or my high end product to traditional. I was entering numbers based solely on consumer’s ideal preferences, rather than understanding these numbers. After entering what I thought were correct numbers, I was seeing no effect. After receiving some assistance, I am beginning to get back on track. I have started transitioning my high end product to a traditional (refer to figure 1); and I am now regaining profit back. Although my strategy has not yet achieved any of my company goals at this point, with gaining more understanding of my strategy and how to implement it, I will be successful. Seeing that my Research and Design seemed to be the most far off
Erie
C45199
Section 014
(Simulation Analysis Report)
BIC is a product that has been extremely successful, offering items such as a low-cost disposable razor, and pens that add value to the user at an affordable price. BIC uses a strategy similar to the Niche Cost Leader Strategy. The Niche Cost Leader Strategy puts the main focus on positioning a product at an affordable price while still presenting value to its customers. My reasoning for using this strategy is that my products will be extremely useful and beneficial to its consumers; products like BIC and McDonalds are in extreme demand with the situation of today’s economy. To maintain this strategy, I will keep the costs that go into the products low. Costs such as Research and Design, materials, and production serve as an important factor in the pricing of Erie’s products. As you continue reading, you will see my strategy unfold, the obstacles that I have faced, and the improvements that I will be developing in the near future. Although I chose Niche Cost Leadership with reasoning, executing the strategy and making it happen was much more challenging. I did not seem to have a good understanding on the program itself, or my strategy; I did not comprehend exactly how to change my traditional product to low end, or my high end product to traditional. I was entering numbers based solely on consumer’s ideal preferences, rather than understanding these numbers. After entering what I thought were correct numbers, I was seeing no effect. After receiving some assistance, I am beginning to get back on track. I have started transitioning my high end product to a traditional (refer to figure 1); and I am now regaining profit back. Although my strategy has not yet achieved any of my company goals at this point, with gaining more understanding of my strategy and how to implement it, I will be successful. Seeing that my Research and Design seemed to be the most far off