Competitive Strategy Game: Week 4

By Lu


 

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(Orlando, Florida) Mickey, cast a spell and dissolve my worries away.

Week 4

Updates from the previous week, we sold off all of the productions and netted some profits. But considering that we sold out, there’s the unfortunate hindsight that we are charging too low and do not command enough market share. So, the challenge this week is to tweak our parameters a little to adjust the profit margin. Also, another team made a huge investment into Market A, effectively displacing us as the major competitor in the market with double our production capacity. This sent a lot of mixed signals to us. It’s already a fairly competitive market and then someone else invested to account for half of the market capacity. There’s going to be price competition going on.

Bringing in the next decision, I wanted to reduce our price in Market A, we’ll gain less profit but we’ll send a signal to the other team that we are not to mess with and they should cut off their sunk cost and move out of the market. But, the rest of the team wanted to increase the price to fight with our profit margins instead. Also, I wanted to increase capacity in Market B but they opted to maintain everything. Looks like things are not going my way but it’s a team decision and I’d voiced out my opinions. There’s still some time left to make amendments. So, we will see.