At this round of the game, most of our strategies are firmly in place, as we officially enter the second half of the simulation. Even if we desired to implement significant strategic changes, there wouldn’t be enough time to effectively do so. I believe that, up to this point, our team has been performing well. While looking back, I can see a few details that could be refined, it’s clear that compared to the rest of the class, we are performing above average.
This week I didn’t spend as much time as I used to on the Capsim, as I was away out state for a event.
Figure 1 , Ending stock price for Round 5
Market Situation
Size Market will be controlled by three major player, not two
We are narrowing our gap and positioning our product in an ideal spot for round six, while Digby is also aggressively investing in research and development within the size market segment.
Last round, we made the oversight of not expanding our production capacity, which could be a negative factor currently. However, after reviewing the analysis, I believe it has a smaller negative impact on the company than I initially anticipated. Our R&D for the size product will not be completed until mid-year. So, technically, as long as our productivity can meet at least half of the year’s demand, which is around 1500 units, we should be in a good position. Nevertheless, there is still the possibility that we might run out of stock.
Tie in High end
We are narrowing our gap and positioning our product in an ideal spot for round six, while Digby is also aggressively investing in research and development within the size market segment.
Last round, we made the oversight of not expanding our production capacity, which could be a negative factor currently. However, after reviewing the analysis, I believe it has a smaller negative impact on the company than I initially anticipated. Our R&D for the size product will not be completed until mid-year. So, technically, as long as our productivity can meet at least half of the year’s demand, which is around 1500 units, we should be in a good position. Nevertheless, there is still the possibility that we might run out of stock.
Market Prediction
Strategy
For research and development, we generally aim to complete R&D by June or July. However, this round, I believe sacrificing one to two months of sales in exchange for a more aggressive R&D approach is a viable option, given our current strong cash position.
We’ve maxed out on size, with our current capacity at 800 units. We’ve pushed production to 1600 units to try to capture as large a market share as possible. As R&D won’t be finished until June, I don’t fully expect our final sales to exceed this number. A more realistic estimate would be around 1300 units. But, based on observations from the previous round, I anticipate that either Andrew or, more likely, Digby will underproduce, which could provide us with an additional market opportunity to seize.