Final Capsim Report

Topics: Management, Investment, Strategic management Pages: 2 (687 words) Published: November 6, 2011
State of the Industry:
The sensor industry is an attractive industry due to its’ rapid growth rates and high entry barriers. Additionally, there are no close substitute products. The bargaining power of suppliers is not a factor affecting the sensor industry at this time. However, the bargaining power of buyers is extremely strong, due to the fact that switching costs are low, and most product segments are fairly standardized. The sensor industry is also characterized by intense rivalry among six strong competitors. State of the Company:

Chester Sensor Corporation is in a good competitive position at the end of the seventh year of operations. Market share, profits, and stock price have all increased. There were some bumps in years three, four, and five, due to heavy spending on production expansion and automation increases. Chester has also made substantial investment in research and development. These improvements were driven by the corporation’s initial goals of having a state of the art manufacturing facility and superior product lines. Future Outlook:

The future outlook for Chester is excellent. The biggest opportunity facing our corporation is the rapid industry growth. The factory currently has in place, the infrastructure, trained labor, and quality processes, to take advantage of this expected growth. Another opportunity for Chester will be growth from continued segment differentiation. Chester has primarily focused research and development on the High End, Performance, and Size, product segments. Two competitors have dropped out of each these segments, making it possible for Chester to realize gains in these markets. The threats facing Chester come from the stiff competition of strong industry rivals. These robust rivals will challenge our company to keep its’ competitive business processes at the most efficient levels. To maintain market share gains, Chester will need to fine tune sales and marketing and continue to invest in research and...
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