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Capsim Situation Analysis

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Capsim Situation Analysis
A company situation analysis can be defined as “matching the company’s strategy to external market circumstances and to internal resources and competitive capabilities.” We believe that our company, Chester Electronic Sensors, is currently in a position to spring ahead in the Electronic Sensor market. The industry in 2011 (round 0) consists of six competitors in very similar positions, holding virtually equal market share. We will use indicators in the industry to help determine our position and build our marketing, production, R&D and financial strategy. The situation analysis, as outlined by Capsim, will help provide us with a picture of the current conditions of the market and how it will develop in the next 8 years (rounds). This analysis will include five elements; 1) Perceptual Map, 2) Industry Demand Analysis, 3) Capacity Analysis, 4) Margin Analysis, 5) Consumer Report.

The perceptual map will assist in determining each step of our research and development, to help us plan how best to grow and develop our products over time based on customer expectations for product size and product performance. Table 1 includes the starting position and development changes for each year for each of our starting five products, each one in a different segment – Traditional, Low End, High End, Performance and Size.

The figures in Table 1 indicate the placement of each product segment at the beginning of each year (round) and the planned size and performance increases based on market demand. The market demand is determined based on the Industry Conditions Report which indicates the locations and drift rates as seen in Table 2.

The Demand Analysis is a tool for marketing and production to evaluate and forecast the future market demand for each product in each segment. The Demand for the following year is calculated based on the initial growth rate given for the segments in the industry. Table 3 shows the results of calculating the annual

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