1. Melissa Berasaluce Kirby Chenkin Edgar Colunga
Team Baldwin
Melissa Berasaluce
Kirby Chenkin
Edgar Colunga

2. Executive Summary and Vision Statement
To adopt a Differentiation Strategy with a Product Lifecycle Focus.
To create a competitive advantage by distinguishing our products with excellent quality and design, high awareness, and easy accessibility, always pricing at a premium.
To develop premium products for mainstream customers willing to spend more on quality and innovation.
Our primary stakeholders are our customers, stockholders, employees, and the environment.

3. Intended and Emergent Strategies
Intended Strategy
Emergent Strategy
Maintain steady movement of products from high to low tech segments
Sustain highest market share in the high tech segment
Sustain moderate market share in low tech segment
Reduce costs and prices to remain competitive in low tech segment
Continuously reposition older products to retain market share in both segments

4. SWOT Analysis Internal
Strengths
Ability to capture and maintain market share in high tech segment
Ability to maintain high customer awareness and accessibility year over year
Ability to meet or exceed potential market share in both segments
Weaknesses
Placement of low tech products and products in transition
Ability to meet customer buying criteria
Forecasting

5. SWOT Analysis External
Opportunities
Growing market in both low and high tech segments
Competitors whose strategies did not develop until mid rounds
Competitors who were reluctant to spend money or price high
Threats
Competitors with similar intended and emergent strategies
Competitors with effective forecasting models
Competitors who recognized and responded to trends

6. Intended Strategy Differentiation with Product Lifecycle Focus
Research and Development
Finance
Introduce one new high tech product every other year for a total of 3-4 products
Fund investments with early stock issuance and long term debt
Buyback shares, reduce borrowing, and pay dividends once healthy cash flow is established
Allow high tech product to drift into low tech segment and eventually phase out
Place products at the highest end of each segment
Human Resources and Total Quality Management
Marketing
Invest aggressively in specific areas of HR and TQM until point of diminishing returns is reached
Price products at a premium
Invest aggressively in product promotion and sales
Production
Increase capacity and automation as budget permits

7. Emergent Strategy Combination with Balance Scorecard Focus
Research and Development
Finance
Introduce a total five products to keep up with market trend
Fund investments with continuous long and short term borrowing
Decrease material costs by decreasing product quality
Human Resources and Total Quality Management
Inability to phase out low tech products due to potential loss of market share
Invest aggressively in all areas of HR and TQM
Marketing
Reduce spending on product promotion to increase contribution margin
Production
Increase capacity and reduce production to control second shift and overtime expenses

8. The Competitive Market
Team Chester – Broad Differentiator
Closest overall competitor
Strong financial statistics year over year
Team Digby – Combination
Significant market share in both segments
Introduction of five products
Team Erie – Cost Leader
Moderate market share in both segments
Team Ferris – Combination
Maintained only two products for six rounds

9. Market Share Trend

10. Strategic Decisions Round 4 – Emergency Loan
Stronger focus on customer buying criteria
Conservative forecasting for rounds 5 – 8
Rounds 2, 7 and 8 – Product Stock-out
Round – Competitors Introduce Several Products
Cost and price reductions within low tech segment
Introduction of fifth product in Round 8

11. Overview Lessons Learned What Worked Well What We Would Do Differently
Small changes in each area had a significant effect on overall performance
Good understanding of the effects of each decision creates advantage
What Worked Well
Strong early performance
Reliance on balance scorecard to dictate decisions in later rounds
What We Would Do Differently
Follow the balance scorecard metrics more closely from the beginning
Prepare a better forecasting model

12. Capsim® Evaluation
Appropriate level of difficulty for a senior level course
Enjoyable and competitive game
Class time was insufficient to analyze and execute all decisions
Suggested changes:
The ease of imitating competitors’ strategies
The emphasis on metrics and the balance scorecard