Note that Erie may be able to charge a better price for the High-End, Performance and Size products but the Traditional and Low-End products have to have a more modest price. We will gain a competitive advantage by distinguishing our products with an excellent design, high awareness, and easy accessibility. A differentiation strategy is an approach businesses develop by providing customers with something unique, different and distinct from items their competitors may offer in the marketplace. As a broad differentiator in the market, the performance segment focuses on the reliability and ideal position of the product. A Broad Differentiator strategy … We will finance our investments primarily through stock issues and cash from operations, supplementing with bond offerings on an as needed basis. The industry simulation is the sensor industry. Erie keys off of the Industry Conditions Report Performance and Size Centers for each round listed for the following segments: Traditional-Eat; Low End-Ebb; High End-Echo; Performance-Edge and Size-Eat. Chester’s performance product is Coat. CAPSIM - Winner Presentation (An example of utter dominance) Here is the presentation of my CAPSIM simulation team (Team Baldwin), in which we mercilessly destroyed, decimated, and demoralized our competitors into oblivion! It may be necessary to increase automation gradually over the rounds of the competition. Hold reliability (MTBF) steady. We will grow capacity to meet the demand that we generate, avoiding second shift/overtime when possible. Currently my team is doing Niche Cost Leader (for practice rounds) but finding it very difficult and wondering if we should switch when the real simulation starts. SHAREHOLDER MEETING 3. It received a market share 15% within 3 rounds of execution. Premium products for the industry: our brands withstand the tests of time. We measure performance in terms of market share, market cap, ROA, and profits. In the Pro Forma Income Statement make sure each product has a net profit. Erie does this calculation for the rest of the segment products: Low-Ebb, High-Echo, Performance-Ebb and Size-Egg. Erie should divide the 7,387,000 units by 6 and make a prediction that Erie will sell approximately 1,231,167 units. Broad Differentiation. In the practice rounds the individual companies get an idea of the strategy performed by the other teams and the computer team Ferris. Not hard to do, since they were incompetent, but it was fun! James Cage (author) from Orlando, FL on November 15, 2013. Broad Differentiation. In the Production Margins Area we have listed the total unit cost and contribution margins. Capsim Strategic Management Simulation: First Place. Dot - Improve positioning and reduce age. In CapSim, a firm should launch a new product if: The strategy calls for it in the Team Member or On-Line Guide. Differentiation Strategy with a Product Life Cycle Focus. But more important and effective than this is how Nike makes its customers feel. Erie must analyze what the other companies have done with their segments. There are six basic team strategies listed on page 24 in the Capstone Team Member Guide 2012. Hence an innovative strategy is highly recommended in order to achieve high business growth, in case you are willing to expose you to a higher degree of risk. Access The Broad Differentiation Sample. Design 2. A final note, this is a competition among teams. The number 1,231 is placed in the box. • Have a pre-grade option that would allow teams to send in their decisions to CAPSIM for a review and recommendations before official submit. If a company overestimates sales or spends too much money, current debt may increase. CAPSIM-Team Ferris Nikita Motkur, Howie Hehrer, Cori Porasik, Priscilla Gonzalez & Neha Noonemunthala December 8, 2016- BUS 6990 Strategy Formulation and Org. CAPSIM ANALYSIS: FERRIS 14 700 by the end of Round 8 with a plant utilization of 184%. Erie should keep their revision dates before July 1 of the current round. R&D competency is developed that keeps designs fresh and exciting. 16.4 Digby - Broad Differentiation. We chose broad differentiation as a a strategy. In the Traditional and Low End segments the age of the product can be older. Capsim Simulation Broad Differentiation Strategy. Let’s take the Traditional segment which has industry unit sales of 7,387,000 units or 32.4% of the market in round zero. Fire was able to produce sales for 1,235 units with its capacity of 14. R&D competency is developed that keeps designs fresh and exciting. The only way to improve your company’s performance is to analyze what the other teams are doing each round and make adjustments for all modules. In order for this strategy to work a company has to be aware of what the competition is doing every round. In the Finance Module, as a basic rule of thumb keep accounts receivable at 30 days lag and accounts payable at 30 days lag. The Digby computer team will maintain a presence in both segments of the market. The first customer buying criterion is reliability (measured in hours) as Mean Time Before Failure (MTBF) rated importance of 43%. At the end of the round, Erie can do a comparison price check against the other companies’ products in the Capstone Courier. Our goal is to offer customers products that match their ideal criteria for positioning, age, and reliability. We will keep our existing product line, and introduce at least one more line, maintaining a presence in both segments. All five segments: Traditional, Low, High, Performance and Size equals 100%. In the Marketing Module Erie must improve the price of segment products round by round. Competitive advantage is gained by distinguishing products with an excellent design, high awareness, and easy accessibility. The industry simulation is the sensor industry. Our original strategy had failing results and our team placed last at the end of the first round. Example: Increase Dixie 's performance by 1.2 and reduce Size by 1.0. R & D Round 1 . When our cash position allows, we will establish a dividend policy and begin to retire stock. When a company pays back bonds the company’s S&P rating will improve. There are actual market share units listed in the Capstone Courier. Andrews has decided to adopt features from several different basic strategies to form our own hybrid strategy. We will gain a competitive advantage by distinguishing our products with an excellent design, high awareness, and easy accessibility. The main objective of implementing a differentiation strategy is to increase competitive advantage. Explanation: Broad Differentiation strategy refers to building a business or a brand that differs significantly from that of the competitor. We will attempt to differentiate our product line … Two competitors are pursuing Broad Differentiator strategies. CHANGING STRATEGIES TO MAKE BETTER PRODUCTS• Original Strategy: • Cost Leadership • Differentiation Strategy• New Strategy • Focus Cost Leadership Strategy • Differentiation Strategy 4. It is essential in most companies and have exemplary impact on consumers, thus a good remedy for the Capsim. Less stock on the open market will increase the price per share of the company’s stock. opportunity for success, as they enable a company to create a competitive advantage by having differentiated products, services or business models. Our team's original strategy was broad differentiation. Under the Unit Sales Forecast is the Inventory on Hand. We expect to keep assets/equity (leverage) between 1.5 and 2.0. As the game progresses, you can change it to a hybrid of broad differentiation. The first round ends December 31, 2013. 15.4 Digby - Broad Differentiation. Wondering what the easiest strategy is for Capsim and why. Products keep pace with the market, offering improved size and performance. Mission Premium products … These revisions change the Age at Revision for each segment. Daze - Improve positioning and reduce age. Executive Summary The Digby team will adopt a Broad Differentiation strategy, maintaining a presence in every segment. In this case, I mean making adjustments, especially on thrift segment, to sell at a lower price than the industrial average to maximize your market share. The Human Resources Module will be added in the third round. Broad differentiation is a strategy that is applied across an industry, appealing to a broad range of shoppers. I usually go for broad differentiation because it is more flexible. Capsim Team Strategy Report Our team decided to choose the “Broad Differentiation” strategy as the basic strategy for our company. In the Physical Plant Section, Erie wants to make sure they have enough 1st shift capacity not to pay overtime to employees. In the computer simulation I would recommend not to buy back stock unless your company has a great over surplus of funds. Best strategy for Capsim? Nothing personal, chumps! In the High End, Performance and Size segments customers want new and better products. Hold reliability (MTBF) steady. capsim report 4555 Words | 19 Pages. Broad Differentiation Strategy is quite unique and brings about many Examples. A Broad differentiation strategy maintains a presence in every segment of the market. Choose COMPXM strategy . After the practice rounds, you are free to pursue any strategy you wish, and can abandon the Broad Differentiation strategy entirely. We are somewhat adverse to debt, and prefer to avoid interest payments. Example: Increase Daze ' s performance by 0.8 and reduce size by 1.0. © 1985 - 2011 Capsim Management Simulations, Inc. 16.1 Andrews - Cost Leader with a Product Lifecycle Focus, 16.2 Baldwin - Differentiation with a Product Lifecycle Focus. CAPSIM SIMULATION WINNERS!BY: MINHEE HUH, MOLLY MCGOWAN, AND KING TAN 2. In order to achieve the broad differentiator strategy, a new product was introduced in the high segment i.e. In this simulation there are the following modules: Research and Development; Marketing, Production and Finance. A rule of thumb is to keep the contribution margin above 25%. Although the Capstone Team Member Guide recommends a 30% contribution margin in each segment, this is very hard to accomplish during competitive rounds. (During the practice rounds, each company is assigned a different strategy.) The computer will then calculate the unit Production after Adjustment. These strategies are Broad Cost Leader; Broad Differentiation; Niche Cost Leader (Low Technology); Niche Differentiation (High Technology); Cost Leader with Product Lifecycle Focus and Differentiation with Product Lifecycle Focus. It's a strategy that works better for larger companies than smaller ones. This makes it easier to adjust to what the other companies are doing. The Digby computer team will maintain a presence in both segments of the market. Improve reliability (MTBF) to enhance demand. Examp… Erie may be able to increase the contribution margin in some of the other segments but an average of 25% contribution margin in all segments is pretty good. In the Capsim simulation course at Georgian Court University, Lakewood, NJ in summer session 2012, there are six companies are: Andrews, Baldwin, Chester, Digby, Eire and Ferris (Computer). In the Capsim simulation course at Georgian Court University, Lakewood, NJ in summer session 2012, there are six companies are: Andrews, Baldwin, Chester, Digby, Eire and Ferris (Computer). Follow the decision guidelines below unless directed otherwise by your instructor. The Digby team will spend aggressively in promotion and sales in both segments. CAPSIM PRESENTATION-TEAM FERRIS 1. It is best for Erie to price products at a mid-range in order to be competitive. In the Production Module Schedule the sales forecast carries over to the Unit Sales Forecast. Competitive advantage is gained by distinguishing products with an excellent design, high awareness, and easy accessibility. The first round ends December 31, 2013. Our primary stakeholders are customers, stockholders, management, and employees. • Strategy – Broad Differentiation • Presence in every segment (check) • Excellent design (5 of 5 segments) ... not what our strategy was. Moreover, the company will gain a competitive advantage by distinguishing products with an excellent design, high awareness and easy accessibility. A Differentiation Strategy with a Product Life Cycle Focus seeks to be known far and wide as the top producer of the best performing state-of-the-art products. This is a competition and Erie has to adjust to the marketplace. Dell - Leave positioning alone, allowing the product to age further. The Secret to Capsim Success it’s all about the sweet spot… Team Andrews Fall I 2009 BUSN 6200 Presented By Team Andrews: Brad White, Tim Fish, Christina Vance, Stephanie Bogan, & Anthony Vatterott Team Approach Vision Statement To design and manufacture the world’s most cutting edge electronic sensors. Areas we excelled: Standardized and proprietary tools & processes Positioning, forecasting (early rounds) Functional expertise & strong communication Early, aggressive TQM investments - able to lead our segments and achieve higher margins Management Decision Process Cross Capacity is expanded as higher demand is generated. Erie Company has to implement a plan to upgrade the performance, size and Mean Time before Failure (MTBF) of its products. 1. Erie uses this basic calculation for the other product segments. Even though High, Size and Performance sell fewer units these segments sell at higher prices. We simulated developing silicon wafers for 6 rounds representing 6 years. We will develop an R&D competency that keeps our designs fresh and exciting. Erie must check in the Capstone Courier to see which teams are automating. Ideal Automation Rates and New Products Broad Differentiation Strategy I have read so many different automation strategies and would like to know with reasons which is best. Automation costs money but a small increase in automation, 0.3 per year may be enough to stay competitive. One basic strategy is Broad Differentiation. Daze - Slightly reduce reliability (MTBF) to … In the real world companies buy back stock. Example: No change required. In this manner Erie will have a better product then most of the other companies for the second half of each round (year). Erie must adjust the Production Schedule for Traditional-Eat to equal 1,231,161 units. Note that the highest to lowest market share in units in the competition is Low End, Traditional, High End, Size and Performance. This improves the position of the product, making it more appealing to our customers.