Sai Vishnu M N

DM17244

Strategy

In round 1, I set the charge rate as 100 basis points and gave the following
discounts
o FII 0%
o HNI-5%
o Sub-Broker 5%
o Retail 0%
I based my decision on my trial games against the computer and this
charge rates kept me competitive for few rounds against the computer

I realised that I would lose my customers as the game progresses and thus
reduced the charge rate. But I didnt reduce too much as I would lose onto
FII and HNI.
But then, I would have to lose my retailers and sub-brokers.
Hence, I decided to concentrate on HNI and FII first, and also try to retain
some sub-brokers.
I did this by reducing the charge rate and kept it constant for round 2 and
3as
o Charge rate 92
o FII 2%, HNI-8%, Sub-Broker 8%, Retail 2%
I again changed my charge rate only in round 4 in order to earn more
customers and kept it constant till the end
o Charge rate 81
o FII 5%, HNI-7%, Sub-Broker 12%, Retail 7%
I invested heavily on speed and reliability improvement.
I increased the Training expenses and the number of relationship
managers to 7.
The analysis section stated that I did not maintain sufficient discount rate
difference between SB and Retail

Result:
After round 1, I was in 1th position and maintained my position till 2nd round.
After 3rd round I gradually kept going down the ladder and got to the 8 th
position after 5th round which I maintained till 7th round and finally finished in
9th position. The game against the computer was only 5 rounds. I felt that if
there are more rounds, the investment in Speed and Reliability and Training
expenses would make a difference in the later rounds. Had I decoded the way
to retain sub-brokers earlier, I could have had a better standing in the end. I
did poorly on the SB segment, as I am unable to find a way to balance all 4
investor categories.