Capsim Analysis Report Essay

657 Words May 15th, 2012 3 Pages
Capsim Team Strategy Report
Our team decided to choose the “Broad Differentiation” strategy as the basic strategy for our company. We will attempt to differentiate our product line in several distinct dimensions. By providing products that are vastly superior and unique from our competitors and pricing the products with an affordable price, we can gain something that is beneficial for the company in the future, which is customers’ loyalty and awareness. We may change or modify our strategy for the next round depending how it performs against our competitors.
R&D. In the first round, we tried to maintain a presence in every segment of our products by improving the performance and decreasing the size. We improved all of our products
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After identifying the product(s) with the high sales, we will expand the capacity of that product(s). For the second round, we will analyze and adjust the automation levels to improve margins.
Finance. In order to finance our startup year, we issued stocks and borrowed loan to finance our operation and for safety in case the sales did not go well. Financing using stocks means that we are selling common or preferred stocks to individuals. In return for the money, they get some ownership over the company and its interest. This helps to bring public’s awareness about the company. If the sales suffice, we will pay the debt in the second round.
We will also analyze the proforma(s): balance sheet, income statement, cash flow, ratios, and score board. In the income statement, we can see the predicted sales of our products and see if there are any adjustments needed. We also made sure that we are making a good net profit.
Future Strategy
In the real competition, we will still use the broad differentiation strategy in the first round. We will make our products better than the market with an affordable price. By using this method, we create a brand image and customer loyalty. Over time, brand recognition will lead to greater company profitability. In the second round, we will still improve all of the products’ performance and size, in which it has to be better than the market. For the price, we will keep it same

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