Tata Stimulation Game Essay

1297 Words Jan 9th, 2013 6 Pages
The strategy simulation game is to provide insightful information with different scenarios which help in understanding the differences in different market structures of monopoly, oligopoly, monopolistic competition, and perfect competition. The overall goal of the simulation games is to maximize Quasar’s profits and be competitive by making decision on strategies in dynamic market conditions. Simply, the total revenue minus the total costs is the method to calculate a firm’s profit. However, the company also has to consider how the sales price will affect the demand. The simulation game shows that when the price is set too high, the demand will be low, vice versa. When the company set the price within the average total cost curve and …show more content…
If old machineries broke down, that can delay the entire production process which can probably result in profit loss and reduce its competitive advantages. Upgrading production process through intangible resources must identify who are involved in this process. Employees are the assets of companies and increasing individual job-relevant knowledge can improve production effectiveness. In the oligopoly market and facing few other competitors in the market, the company needs to protect is market share in order to remain being a leading company. The simulation game demonstrates that when the company provides lower price than other competitors can attract more customers and gain more market share. When competitors increase, it is important for companies to differentiate themselves through cost leadership or differentiation. While companies that are in oligopoly market, it is easier for existing companies to apply cost leadership strategy to create high entry barriers and to differentiate themselves from new entrants as the simulate game demonstrated. Rothaermel (2012) pointed out that “non-price competition is the preferred mode of competition” in oligopoly market (p.63). For example, customer relationship management can create value for customers. Studies show that there is a clear and direct relationship between companies’ profits and

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