PRESENTATION VISUAL-STRAT BUSINESS GAME. Entering the Global Market A unique product manufactured in...
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Transcript of PRESENTATION VISUAL-STRAT BUSINESS GAME. Entering the Global Market A unique product manufactured in...
PRESENTATIONPRESENTATION
VISUAL-STRAT BUSINESS VISUAL-STRAT BUSINESS GAMEGAME
EnteringEntering the Global Marketthe Global Market
A unique product manufactured in Europe . . .
The Motorcycle!!
Three MarketsThree Markets
1) the European market, where your company is already a leader
2) the North American market, where a dealer network has just been set up
3) the Global market, which will be accessible after three periods of prospecting
Gaining Market Shares Gaining Market Shares
• by being the most aggressive in terms of prices and advertising
• by prospecting new markets in the Rest of the World
• by developing one’s brand image due to sponsoring
Finding New CustomersFinding New Customers
Prices (short-term): action at N
• Advertising budget (mid-term): action at N, N+1,N+2
• Prospecting (mid-term): action at N+4
• Sponsoring (long-term): action at N+4 . . . N+10
Finding New Customers Finding New Customers
• By entering in the global zone after a minimum of three years of exploring new market or prospecting you have to allocate at least 6%
of the turnover in prospecting
• In period 4, the prospecting budget must be more than the competitors’ average.
• The prospecting effort must be continued even after achieving the opening of this market.
Finding New CustomersFinding New Customers
By making bids if your company is already known
• This is an order to satisfy the next period if your offer has been selected.
• It is valid only for one period.• Conditions to partaking:
You have to allocate a budget of at least 5% of the turnover in sponsoring.
The Police
Finding New Customers Finding New Customers (Joint Venture)(Joint Venture)
By signing agreement with local partners= COMMERCIAL INVESTMENT
•using the local know-how•creating local jobs•decreasing the customs fees
Only the two most efficient and fastest companies will be able to do it.
Product Life CycleProduct Life Cycle
Launch and growth
Phase 1 Phase 2 Phase 3
Maturity
Sale
s
Time
• Invest in new plants to satisfy the demand.
Adapting Your Offer to Adapting Your Offer to the Demandthe Demand
• Do not produce useless stocks and close plants if necessary.
additional information on: market trend, strategies of competitors,
cost prices of the products etc. first year for free !!!
Buy information about market trend!
Adapting Your Offer to Adapting Your Offer to the Demandthe Demand
From period 4, do not hesitate to do subcontracting
Adapting Your Offer to Adapting Your Offer to the Demandthe Demand
You have stocks:
On the contrary, your production and stocks are not sufficient:
Be a SELLER
Be a BUYER
Subcontracting requires an agreement between two partners about volumes and pricing.
Control Your CostsControl Your Costs
by producing at full capacity
by improving the design with research and development
by maintaining the production tool
Adapting Your Production Adapting Your Production CapacityCapacity
by proposing flexible working contracts (overtime hours, limited period contracts)
by developing investment or closing existing production lines
by subcontracting to other companies (from period 4)
Managing Financial Managing Financial ResourcesResources
• Loan
• Draft
• Capital Increase
• Placement
Preparing your decisionsPreparing your decisions
Update the data of the scenario
Download the Excel file.
These values must be checked onthe main page of www.visual-strat.com.
Define the right price!
Gain Market Share:
Invest in Advertising
Invest in Prospecting (6% of turnover)
Invest in Sponsoring (5% of turnover)
Do commercial investment
Invest in new plants (from 1 to 5)
Control your Production and Stock : make deals with your competitors (sale & buy)
Buy Market Study and Strategic Information on Competitors
Distribute dividends to make your shareholders happy!
Key DecisionsKey Decisions
And now . . .And now . . .
Let the competition begin!