I’m working on a management writing question and need an explanation to help me learn.
- What strategy did you choose to pursue? Did you change strategies? Did you change execution tactics?
- What are the top 3 insights about business & strategy that you picked up on during the exercise?
- Insight 1
- Insight 2
- Insight 3
- What would you do differently?
- Did you ever improve?
I have finished question123 than according to question123 Answer the question 4
At the beginning of the simulation, our company D had three models, namely economy model, family model and truck. For these three models, we chose the cost-leadership strategy We decided to reduce the cost of the model we sell. The aim is to provide the best quality car for the same price or a cheaper car for the same quality. We didn’t change our strategy, but we did develop a high-performance luxury sports car. Obviously, this model is more suitable for Niche strategy. We have been trying to reduce costs through our research and development center. But now I think we might reduce the vehicle configuration if only for cost reduction.
Insight 1. Always analyze the data
The general direction of our company was right at the beginning. However, due to the lack of careful data analysis in the middle and late period, there is a phenomenon that the income in the early period is large, but the income in the later period is low. We attribute this phenomenon mainly to the fact that there was no actual, massive data analysis, but rather to the ideal plan from the beginning.
Insight 2. The right is the best
In the practice of Simulation, we found that the market reaction of Delite was not good.
Based on the unit share and sales of the Delite, we found it difficult to compete with Company A and Company E unless we invested more in this model, so we abandoned this model and invested more in other models. In addition, it is not until the middle and late stage of Simulation that we find that the better the vehicle’s properties, the more sales of this vehicle will be. The Detonka car, for example, needs to spend more energy and money reducing some of its properties because of the errors in its early operation. Because it’s a Detonka’s audience that cares more about the Size and the HP of the car than the attribution.
Insight 3. Timing is important
Our company has made a terrible mistake. Since we were not fully familiar with simulation’s operating system in the practice phase, our new car was released after 6 periods. By the time the car was released, there wasn’t much market share left. Therefore, in terms of our company’s new vehicles, we lost a lot of Income due to the time of release.
In our group’s overall strategy, our initial strategic overall direction is correct. Most of the D-group models are economical and practical, so the initial strategy is to reduce costs and vehicle costs, thus reducing the price in exchange for greater market share. Although this model is more effective in the early stages of development, other companies’ technology and vehicle performance do not have enough time to develop. But over time, when the vehicle performance of other companies is gradually improved, the advantages of price performance and market share of our group will decrease significantly, and the profit will decrease accordingly. Our group made a change in the sixth week and released a new car to enter the market. But I think this change is wrong. Because there are nine sales periods, the new cars in our group have been released much later, which leads to the new cars not only occupying a large part of the cost, but also unable to guarantee a certain market share. Because our new cars are high-performance sports cars, and group a and B have certain market control over high-end vehicles, so even if we enter the market, the new cars will be sold, And it has not brought a big profit growth to our group. In addition, our group has made some corrections to the problems in the first six weeks and made new strategies. After the sixth week, our group increased the dealer’s fees and discounts, and the training cost of dealers increased by 50%; And the investment in advertising has increased by 50% and we think that increasing publicity can improve the popularity of our two economic models, thus increasing certain market and more sales orders. This change is a relatively powerful change for us in the next few weeks. And in the company deposit, we finance the remaining deposits to get an extra income. Finally, in the original two models, defy and detonka, we targeted optimization rather than the general optimization as in the previous weeks. We further reduce the cost of the two models and sell as many cars as possible at low prices. Detonka is a truck. Under the condition of limited funds, we changed from comprehensive optimization to only develop engine power, aiming at the optimization of pickup. Defy is a small family car, so we optimize safety and space to save other parts to control manufacturing costs.