SIMULATION GAMES

TEAM PINK – UNIVERSE 2

STRATEGY PROPOSAL
TEAM MEMBERS

MAMTHA ESWARI K (2013068)

MONISHA A (2013073)

MALVINO A (2013067)

OBJECTIVE:
1. To Increase Competitive Advantage

2. The main objective for the teams is to maximize shareholder value.

3. Aim for: sustainable, profitable growth

STRATEGY PROPOSAL

1. Differentiation Strategy.

2. Increase Unit price.

3. Penetrating Market share.

4. Engaging in Promotional strategies.

5. Chase Demand Strategy.

Rationale behind the strategy:

1. Differentiation strategy is used to have a broad customer base based on the

uniqueness of the products, considerably to provide new features and updates on time
a considerable amount should be invested in R&D.
2. Increase Unit Price: Shareholder’s value can be increased by selling more units or
increasing the unit price. But increasing the unit price will make us to reduce
promotion and transportation cost. So, shareholders value can be increased by
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 selling more units.
3. Penetrating Market Share: To be in Top 5 on Market share in different markets like
USA, Asia and Europe we have to fulfill the demand of the different market based
on their market conditions and the customers.
4. Based on Chase demand strategy the production and inventory storage can be
varied depending upon the geographical location.

SWOT ANALYSIS:

EXTERNAL ANALYSIS:

• Political tension between USA and China have caused the tariffs for Americangoods
exported to the Asian Continent to almost doubled.

• Increasing in technology will cause more competitive advantage to compete with the
other market players by producing more features frequently as customers are expecting
more technology driven up to date products.
• Competition increases more and more based on Competitors selling price, market
share and their promotional activities.
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Strategy and specific functional decisions

Market share:

Market share of the company will be increased by updating our new features in each
product according to the market condition, demand and the competitors value.

Price:

Increasing the unit selling is one of the strategies to increasing the share value so price
remains same, and the revenue can be maximized

Features & Technology:

Adding new features is one of the key strategies and that can be achieved by investing
more in R&D

Capacity utilization:

Engaging in the promotional activities, introducing new ways by which product value
can be increased, which in turn increases the production rate which leads to maximum
capacity utilization.

The demand in Europe is more when compared to other two locations so more units can
be produced based on the Europe Market.

Investment in plants:

Investing in the new plants on USA and ASIA can increase the production and decrease
the logistic cost of transporting products from USA to Asia.

Financial decision:

Our strategy is to mainly increase the shareholders’ value and to not attain the short-
termdebt at the end of the year.