Strategic MGMT Task 1
B/B1- My original strategy was to focus on the niche market, only have 50 different pairs of shoes, higher quality and higher price. But I saw that the market was a lot different at first then that and that I was in 8th place. I decided to change after the first round to be more of a lowest price, match the features and performances of everyone else, but also have the biggest availability of everyone. This worked out for me up until the 17th round, I thought that I had 10 rounds not 8 to make choices on, that is when I made a horrible choice and bought a lot of production with a 1 yr loan and so the final year all that loan was due and my overall score fell down 43 points taking me out of 3rd place back to…show more content…
But overall everyone kept around the same price per pair, shipping time fluctuated down to 1-2 weeks for most regions then back up to 2-3 weeks after people were trying to save money, advertising slowly went up as people were trying to gain market share, and the retail outlets and retailer support was all over the board the whole time, but everyone stayed relatively in their coarse on those, some choose more was better others stayed about ½ - 1/4 of the top performers spend and utilization.
Looking over the past 8 years of simulation, you can see that there was only one truly week player, that is/was D Deluxe Footwear, he never really did well in any category. He had negative EPS (earnings per share) each year, Return on Equitey was the same, Stock prices kept decreased rapidly the first two years then started to plain off. Team D kept a credit rating at C- the entire game, Image rating never rose to the expected 70 mark once. Team D never increased capacity, had 1,000 units in North America, and 200 in Asia Pacific. Their financial performances were just as bad, net sales never reached past 8 figures, while everyone else was around 200M more in net sales than him. His warehouse expenses were the highest, marketing was 10x that of anyone else, this resulted in COG per pair almost double that of the average. When your cost of pairs sold is 93.7%, you can’t compete with anyone else. Team D was also very heavy