Evaluation Of The Video Discussion

1387 WordsAug 9, 20166 Pages
This was a very interesting simulation. As mentioned in the Flipchat video discussion, I have done several other simulations during my undergrad schooling. Compared to this simulation they were based in the financial realm focused on stocks and bonds. However, they all share a similar aspect in regards that their ultimate goal to maximize profit. Ultimately I ended up doing three different runs through the simulation that each had unique results. My best results showed a profit of $37.5 million and a market share of just under 50% for the state of Florida. During my first run through of the simulations I had simple strategy which was to mimic the prices of the competition. I matched the prices of competitor for both weekend and weekday…show more content…
However, at the same time I believed that because there was only a little gap in market share, the reputation of Universal was greater than its competition and the price difference was the reason for the market share gap. Therefore, I lowered the prices to be comparative to the competitor and my theory was correct and the market share flipped and Universal gained more as the months progressed. This process is what I would implement on a larger scale in my second simulation run. Throughout my second run in the simulation I altered my strategy to have my prices lower then competition and it backfired greatly on me. My thought process for this was that having lower prices would definitely raise market share as consumers would chose the cheaper costs. At the same time I envisioned the drop in prices would result in more consumers switching companies and renting from Universal, but I was wrong. The results of this simulation ended with a loss of over $11 million but a market share of over 50%. My error for this simulation was that I relied too much on lowering prices. In the first simulation the last three months were the competition increased their prices and there were no change to universal resulted in losses of profits. I took that as not adjusting the prices and not that my prices were too low. However, after the second simulation
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