TEAM PRESENTATION

B L U E O C E A N S T R AT E G Y S I M U L AT I O N
AUSTRIA TEAM
FINAL REPORT
1. OBJECTIVES

2. GENERIC STRATEGY

3. PERFORMANCE
REVIEW

4. ACHIEVEMENTS

5. LESSONS LEARNT

6. RECOMMENDATIONS
OBJECTIVES
Share Price Index

• Market share TOTAL

• Market share AGE GROUP

• FINANCE & CAPABILITIES

 RED ROUND
STRATEG (year 41-43)

Y • Focus on GROUP 6-
21

• Reduce PRICE

• Increase MARKET
SHARE

BLUE 1 (Year 44) BLUE 2 (Year 45-46) BLUE 3 (Year 47-49)

• Focus on GROUP 6-21 • Focus on GROUP 6-21 • Focus on GROUP 6-21

& Noncustomers & Noncustomers & Noncustomers

• Reduce PRICE • Reduce PRICE • Reduce PRICE

• Increase MARKET • Increase MARKET • Increase MARKET

SHARE SHARE SHARE
 SHARE PRICE INDEX

SPI 909 @ yr 49
2nd player, behind SHINY
 MARKET SHARE
0.0%

49 13.7% 16.9% 24.6% 17.7% 18.5% 4.7% 3.9%

BLUE 3

48 16.9% 13.5% 24.3% 19.0% 19.2% 3.9% 3.2%

47 17.0% 11.4% 24.9% 20.9% 21.0% 2.6% 2.2%

1.4%
BLU 46 19.1% 8.3% 26.1% 21.6% 21.9% 1.6%

E2 45 21.6% 6.9% 26.5% 22.3% 22.7%

BLUE44 23.3% 2.4% 26.9% 23.2% 24.2%

1
43 26.5% 25.4% 23.0% 25.1%
RED

42 24.9% 26.1% 22.6% 26.4%

41 24.6% 25.2% 23.7% 26.5%

40 25.9% 25.6% 21.3% 27.2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

RED BOX BLUE BOX SHINY STATION PURPLE PLAYER YELLOW CONSOLE
 REV
(M$)

RED BLUE 1 BLUE BLUE 3

2

EBIT
(M$)
 HIGHLIGHT ACHIEVEMENT
RED-ROUND
• Total market share (% Unit) increases slightly
STRATEG while Shiny and Yellow lost their market
Y
RED ROUND Year 40 Year 43 Diff.

Red box 25.89% 26.46% 

• Focus on GROUP 6-
21 years old Shiny Station 25.62% 25.44% 

• Reduce PRICE
Purple Player 21.33% 22.98% 

• Increase MARKET
SHARE Yellow 27.15% 25.12% 
Console
 HIGHLIGHT ACHIEVEMENT
RED-ROUND
• Brand Awareness Increase significantly
STRATEG following our initiative strategy
Y Year 40 Year 43 Diff.
RED ROUND
Red box 27.5% 32.8% 
• Focus on GROUP 6-
Shiny Station 11.6% 9.1% 
21 years old

• Reduce PRICE Purple Player 15.3% 12.4% 

• Increase MARKET
Yellow 45.6% 45.6%
SHARE Console

MARKET STUDY-Customer Preference of customer group

6-21 years old
 HIGHLIGHT ACHIEVEMENT
RED-ROUND
• Converting customers from competitors
STRATEG • Attract new gamers
Y
RED ROUND Year 40 Year 43 Diff.

• Focus on GROUP 6- Red box 886 1464  578

21 years old Shiny Station 564 447 117

• Reduce PRICE
Purple Player 469 466 3

• Increase MARKET
SHARE Yellow Console 1901 1849 52

Sales and Market share of customers group

6-21 years old
 STRATEG
Y
BLUE 1 (Year 44) BLUE 2 (Year 45-46) BLUE 3 (Year 47-49)

• Focus on GROUP 6-21 • Focus on GROUP 6-21 • Focus on GROUP 6-21

• Create demand for • Focus on • Focus on

Noncustomers group Noncustomers (Path 3 Noncustomers (Path 3
&1) only)
• Reduce PRICE
• Reduce PRICE • Reduce PRICE
• Increase MARKET
SHARE • Increase MARKET • Increase MARKET
SHARE SHARE
HIGHLIGHT ACHIEVEMENT
BLUE-ROUND 1&2&3

Performance indicators Year 44 vs Year 49

 HIGHLIGHT ACHIEVEMENT
BLUE-ROUND 1&2&3
Year 44

Customer
Preferences
increase in group
22-35 years old
Year 49 for Blue box
 Noncustomers
awareness
increases
 HIGHLIGHT ACHIEVEMENT

Year 40 Year 49 Achievement

Objectives:
• maximize SHARE PRICE INDEX SPI 1000 909 NO

• Increase TOTAL MARKET SHARE Total Market share (%U) 26% 31% YES
• Increase SPECIFIC AGE GROUP MS Total Market share ($) 25% 22% YES
• Increase Growth rate in Revenue &
Profit MS (6-21 yrs) by Unit 36% 23.2% YES

MS (6-21 yrs) by value 34% 22.6% YES

Market Blue ACHIEVE Shiny (ref.) Purple (ref.) Yellow (ref.)

Growth in SKU 21.9% 33.9% YES 18.7% 5.6% -14.5%

Growth in Revenue 6.3% 16.6% YES 3.9% -3.8% -42.1%

Growth in Profit -70.1% -151.4% NO -29.5% -49.5% -109.7%

 LESSONS LEARNT

• Focus on Group of customers that generate higher profit

margin (22-35 years old/36+ years old)
• Critical thinking when building competing offers for new
product (Especially Blue box in Year 44)
• Carefully forecast production plan aligning with market size
and product’s competitive advantages
 RECOMMENDATION

• Keep focusing on 6-21 Group to earn bigger market share

• Expending in traditional sales channels
• Investing more in Starland
• Switching to E-commerce sales
 AUSTRIA TEAM
B L U E O C E A N S T R AT E G Y S I M U L AT I O N