GLO-BUS - Online Business Simulation Analysis

2363 Words Jun 4th, 2005 10 Pages
I. The Firm's Objectives

A clear strategic plan was set out in the beginning, and adhered to throughout the course of the simulation. Our overall objective was to determine the correct mix and balance of camera components, which enabled the most favorable outcome in the competitive arena. In order to offset the cost structure of the multi-feature camera, a low cost structure for the entry-level camera was implemented. This was achieved by offering a differentiated, high end multi-feature camera, offset by a low cost leader entry-level camera.

Entry-level strategy

o Low cost strategy

o Minimal features

o Low cost per unit on core components

o Market leader

o High sales volume

o Low P/Q rating

o High Image rating

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III. The Marketing Mix

Other competitive factors being equal (P/Q rating, advertising, model selection, special promotion, and so on), charging a wholesale price that was below the geographic market average, raised Amalgamated Holding's potential for above average unit sales and market share. However, price was a much bigger factor in the entry-level segment as opposed to the multi-featured segment. The users of multi-featured cameras were more concerned about picture quality and performance features, than they were about price. We could charge above-average prices for multi-featured cameras because users were willing to pay more for the quality product. It possessed a higher P/Q rating, increased advertising, more special promotions with attractive discounts off regular price, and longer warranties. We chose to have fewer models, than competitors, so as not to risk losing sales and market share to competitors, who were offering a greater selection. Amalgamated Holding's sales and market share, in each of the regions, were heavily influenced by the fact that we chose to maximize retail coverage, for each retail avenue, by sending to every retailer that was interested in our product (see perceptual map in Appendix A). Below are the key points of the marketing mix we employed:


o Entry Level Camera

Low cost strategy

Minimal features

Low cost per unit on core components

Market leader

High sales volume

Low P/Q

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