Explain how these 3 concepts: relate to your car industry performance from you stratsimManagement simulation.
(StratSimManagement is an integrated strategic management simulation where teams compete directly against each other in the fast-paced automobile industry.) ( I have attached screenshots of our teams results compared to other teams starting from year 1, 5 and 10 to show our overall progress. But for this paper please explain how the concept of competitive advantage in our case, our cost leadership strategy and industry growth is relevant in this automobile industry simulation.
1. Competitive Advantage ( our groups competitive advtg. is similar to being the Toyotas and Hondas of the car industry so focusing on providing reasonable price, quality, safe, strong performance family cars, economy cars and trucks. We target family and value seeker customers)
2. Cost Leadership Strategy (drive cost lower through investments in consumer studies, tight cost and overhead control, cost minimization in design, marketing and less building of development centers)
3. Industry Growth (how it directly affects the intensity of rivalry among competitors. Increase in industry growth leads to increase in consumer demand and price usually decreases)
Helpful info:
My teams background: For our simulation, the market consisted of seven firms. Firm A, B, C, D, E, F, and G had all started with the same amount of cash. An economy automobile, a family sedan, and a pickup truck were all produced by each business. For each competing company, all three market offerings were priced identically, and each product began with comparable features and marketing expenditures. Our group was assigned to manage firm B where we produced our family car Boffo, truck Boss and economy car Buzzy.
Our initial strategy was to focus on building our family car Boffo and target towards families and value seekers. We wanted to promote brand equity by upgrading Boffo so that our consumers would want to buy our vehicles for our strong brand power and its association with our focus on safety and quality. But after experiencing a market share decline at the end of year one from 14.3% to 11.7%, we decided to further upgrade Boffo and Boss. We realized that our market share might have declined due to rising costs and increasing competition from other firms so we decided to conduct a study on trucks and upgraded its performance. We were competing in a span of 10 years and for the most of the years we were doing pretty well but in the end ranked last out of all the firms as we could not compete with them and now left in debt.
Example of a team’s report:
