Simulation Report Case

Our first task was to study the market research and decide our initial strategy. To decide our initial strategy, first we analyzed the different types of research data. There were five segments to choose from; Cost cutter, Work horse, Innovator, Mercedes and Traveler. We reviewed the customer needs for each segment and the information regarding how customers intend to use computers. After that we looked at the average price each segment was willing to pay for the ideal brand in different cities as well as the 12-month potential market demand in each geographic area. After analyzing the market research data we decided our initial market strategy. We chose two segments that we wanted to target o be our primary and secondary target segments. We chose cost cutter to be our primary segment and traveler to be our secondary. We formulated a mission statement for our company, decided our market position competitive postures and our distinctive competence. Our mission statement came to be “PC International provides our customers with state-of-the-art reliable computers while striving to provide excellent customers service at low prices. Our computers are made to mold into many different lifestyles and execute many different functions for the benefit of our customers”. Our mission statement says that we wanted to provide computers with high reliability to prices that most people can afford. Further, we decided to focus our strategy on large, highly competitive segments, which we thought the cost cutter segment would fit in. We also decided to focus on geographic markets which where in the middle of the cost/size continuum. We wanted our competitive posture to be like a leader’s markets position; to build a strong market position, take the lead and defend it. Our distinctive competencies goals was to be the low price provider in the market, be the high service provider in he market, and provide the most reliable product on the market. After deciding our initial strategy we decided which sales offices we wanted to open. We had to take in consideration the quarterly lease cost, the setup cost and the annual salary for our employees. We decided to start our business in Berlin where our headquarter came to be. That decision was based on the relative low setup, leas and salary price, and the demand that was relative high on for our cost cutter segment, traveler and the other three segments. Now we had our initial strategy done and it was time to design a product for each target segment. We chose our brand names to be Data Pro for the cost cutter market and ITravel for the traveler market. We felt like those names conveyed our desired image of our product line. When choosing the components for our computers we reviewed customer needs and wants for each segment carefully, and also the use patterns for each segment. We picked the components that we thought would satisfy our customers the most for each segment. For Data Pro we carefully

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