Professional Documents
Culture Documents
Simulation
Broad Segments of Evaluation & Weights
• Presentation: 10%
$100 Million in
5 Product Lines
Sales
Closed
5 Market Marketplace
Segments
I want to
spend as
• Price sensitive. Prefer • Prefer less little money
price to be lowest cutting edge as possible!
possible. products
(Bigger Size &
Low
Performance) I want them
Price Positioning to have been
around for a
while…no
beta testing!
They have to
be
Reliability Age moderately
reliable…but
not enough
to drive up
the price!
• Ideal MTBF: 12000- • Ideal Age: 7
17000 years
The
technology
doesn’t have
to be cutting
edge.
I want these
sensors to be
• Price sensitive, but • “Average” moderately
willing to spend more cheap.
Performance
than Low End and Size
consumers
I want them
Price Positioning to have been
around for a
while…no
beta testing!
They have to
be
Reliability Age moderately
reliable…but
not enough
to drive up
the price!
• Ideal MTBF: 14000- • Ideal Age: 2
19000 years
I want good
sensors… not
cutting edge,
but reliable.
Price is not
an issue. I
want the
• Not price sensitive, • High best sensors
willing to pay highest Performance in the
market!
prices. and Small Size
I want the
Price Positioning newest
sensors you
have!
We need the
total package.
Reliability Age High
performance and
miniaturized for
our products.
• Ideal MTBF: 20000- • Ideal Age: 0
25000 years
Only the
most cutting
edge
products will
satisfy me!
I am willing
to pay for
• Not price sensitive, • Highest what I need.
willing to pay Performance
moderately high prices and Less
important Size
I want them
Price Positioning to have been
around for a
while…no
beta testing!
Reliability and
Reliability Age Performance
are very
important
and must be
high.
• Ideal MTBF: 22000- • Ideal Age: 1
27000 year
I prefer
newer
technology!
I am willing
to pay for
• Not price sensitive, • Average what I need.
willing to pay Performance
moderately high prices but Maximum
Miniaturization
I want them
Price Positioning to have been
around for a
while…no
beta testing!
According to a Market
Analyst, there will be
continuous growth in the
sensor market.
I see the entire
market growing at
around 14% or 15%
per year. The high
tech market alone
will be growing at
16%.
Your goal: Prepare your
company’s products to
meet the needs of the
growing market.
Rounds
Segment Co-ordinates 0 1 2 3 4 5 6 7 8
Traditional Performance 5 5.7 6.4 7.1 7.8 8.5 9.2 9.9 10.6
Size 15 14.3 13.6 12.9 12.2 11.5 10.8 10.1 9.4
Low Performance 1.7 2.2 2.7 3.2 3.7 4.2 4.7 5.2 5.7
Size 18.3 17.8 17.3 16.8 16.3 15.8 15.3 14.8 14.3
High Performance 8.9 9.8 10.7 11.6 12.5 13.4 14.3 15.2 16.1
Size 11.1 10.2 9.3 8.4 7.5 6.6 5.7 4.8 3.9
Performance Performance 9.4 10.4 11.4 12.4 13.4 14.4 15.4 16.4 17.4
Size 16 15.3 14.6 13.9 13.2 12.5 11.8 11.1 10.4
Size Performance 4 4.7 5.4 6.1 6.8 7.5 8.2 8.9 9.6
Size 10.6 9.6 8.6 7.6 6.6 5.6 4.6 3.6 2.6
• Age range is static
– Traditional- demand peaks at 2; peak age zone 1.5
to 2.5
– Low-demand peaks at 7; peak age zone 6 to 8; min
age zone 4 to 9
– High- demand peaks at 0; peak age zone 0 to 1
– Performance- demand peaks at 1; peak age
zone 0.5 to 1.5
– Size- demand peaks at 1.5; peak age zone 1 to 2
• Price range is dynamic
– it falls by $0.50 every year in all segments.
– You may go up to $4.99 above the range in case of
sellers’ market, where supply runs short on the
demand.
– In a buyers’ market please stay within the price
range for that year.
• MTBF range is static through the rounds.
Please determine MTBF of a product based
upon buying criteria and your strategy in that
segment.
• Automation levels – Recommended for each
segment - must happen asap
• Traditional – 8, Low – 10, High – 5,
Performance - 6, Size - 6
• Sales Turnover – Minimum for each Round
• 1 - $115mil, 2-131mil, 3-150mil, 4-
170mil, 5-195mil, 6-221mil, 7-252mil,
8-287mil
• Highest Performances so far, at the end of
round 8:
– Cumulative Profit: over $400 mil
– Stock price: over $600/-
– Market Capitalization: over $1bil
– Average Market share: over 30%