Essay on Globus Report

2848 Words Mar 10th, 2013 12 Pages
Globus Simulation Game Report – Shahab Niaz (Company D)

Introduction

The energies of this report shall be directed towards the documentation, explanation and analysis of our group strategy in playing the Globus Business Strategy Game, and also the outcomes of our decisions. In doing so, aspects that I will attempt to analyse and explain our decisions relate to production design, marketing, assembly (for both entry-level and multi-featured cameras), compensation and labour, discount bids, corporate citizenship, finance and cash flow.

A breakdown of our overall long-term strategy as well as the year-by-year decisions and review will follow in order to assess how well we met investor expectations as well as attempting to beat
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Maintaining this strategy required a continuous year-to-year search for cost reductions in all aspects of our business. This included outsourcing, controlling production costs, increasing asset capacity utilization, and minimising other costs including distribution, R&D and advertising. The associated distribution strategy was to obtain the most extensive distribution possible throughout the four continental regions we were operating on. Our promotional strategy often involved trying to make a virtue out of low cost product features.

The main problem that we found that we faced with the above detailed strategy was that as mentioned earlier we increasingly found ourselves in a continuous price war with our main rivals especially after the first couple of years. We discovered that our cost leadership strategy may have had the disadvantage of lower customer loyalty, as price-sensitive customers will automatically switch brands once a lower-priced substitute is available. A reputation as a cost leader may also in some instances result in a reputation for low quality, which may make it difficult for a firm to rebrand itself or its products if it chooses to shift to a differentiation strategy in future. However we attempted to redress this issue by increasing the amount of money we spent in extending the warranty on our cameras and in customer support, a few years into the simulation.

The

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