Beat the Market Game Report Essay

4202 Words Sep 6th, 2013 17 Pages
ROCHESTER INSTITUE OF TECHNOLOGY SAUNDERS COLLEGE OF BUSINESS SPRING QUARTER 2012-2013

ECONOMIC FOR MANAGERS

BTM Game Analysis Report

Firm 1 Binal Patel Kun Liao Ling Xiao Lei Wella Mohibi Yi xin Huang

1

1) Table of Contents
2) Introduction and Summary Our performance in BTM game Market structure analysis Strategies of our firm 3) Analysis of our problems in the BTM game MC and MR Plant size Price elasticity Training and process improvement advertising, product development and E-commerce 4) How to improve our performance in the future Macroeconomic analysis Competitor analysis Payoff matrix Kinked demand

5) Conclusion

2

1. Introduction and Summary

Our performance in BTM game Our
…show more content…
In oligopoly market, each firm has substantial market power with high degree of interdependence. The key for success in a oligopoly market is to gain more market share than the competitors. Increasing the price can lead to loss of market share to the competitors, so in the oligopoly market, if a firm decreases the price, the other firms will always follow, but if a firm increase the price, the other firms will not follow. The demand curve is kinked.

However, lowering the price decreases the overall profit of the market thus, non-price competition is most important win-win strategy for all the firm. As the game, does not allow us to make product differentiation, the other method that can increase the sales are advertising, product development and E-commerce enhancement. If these expenditures are below market average level, the firm can lose the market share. 4

Besides, decreasing the production cost is also important as the firm can then lower the price. So the decisions related to change in plant size, process improvement and the training are also important.

Strategies of our firm In oligopoly market, one important method to increase the market share is to keep the price lower than competitors price. However, because at the beginning of the game, our firm ignored the importance of the plant size, process improvement and the training, our production cost was higher than other firms. So we could not use the

More about Beat the Market Game Report Essay

Open Document