Digby Case Summary
Analysis of Digby’s strategy
In the 8 rounds of Capstone simulation, our team placed second among the five teams, our stock price was $255.52 at the end of the simulation. We did some right decisions but also made some mistakes, our analysis is as follows:
Round 1:
Five teams all started with the same situation, we didn’t know other team’s strategy, so we simply forecasted that our market share will be 20%, our strategy is a little conserved.
R&D: We made a mistake in R&D because we used the ideal spots in the industry conditions report instead of using the ideal position in the report for round 0 plus the industry trend, We didn’t change the performance and size of the low end products because the No.1 factor customers considering was …show more content…
But for the rest three segments, customers were not sensitive to the price, they will buy the product as long as the product was what they want, no matter what the price was.
We used 20% as our market share in the first round, it turned out that we under estimate the need for our traditional, low end and performance products.
Promotion and sales budget: we understood that the promotion and sales budget ware very important because it would influence the awareness and accessibility not only for this round but also for the next 7 rounds, so we spent $14,400,000 on promotion and sales.
Production: Our production schedule was based on the forecast of our sales, the capacity was more than enough, so we didn’t spend any money on buying capacity this year, but we spent $18,800,000 on automation rating, because it could help to reduce the labor cost.
Human resources and TQM: We didn’t notice the important role about training and recruiting spend and TOM were playing in reducing the cost and the R&D cycle time, so we didn’t spend any money on these …show more content…
Every time we reproduce the product, the age of the product would reduce half of the original age, which was 4.3 in the end of the round 4, but the age is the most important factor customers considered about the low end products, so after we reproduced this time, we would not change it anymore before the simulation end. For the other segments, we just used the ideal spot in the report for round
In the 8 rounds of Capstone simulation, our team placed second among the five teams, our stock price was $255.52 at the end of the simulation. We did some right decisions but also made some mistakes, our analysis is as follows:
Round 1:
Five teams all started with the same situation, we didn’t know other team’s strategy, so we simply forecasted that our market share will be 20%, our strategy is a little conserved.
R&D: We made a mistake in R&D because we used the ideal spots in the industry conditions report instead of using the ideal position in the report for round 0 plus the industry trend, We didn’t change the performance and size of the low end products because the No.1 factor customers considering was …show more content…
But for the rest three segments, customers were not sensitive to the price, they will buy the product as long as the product was what they want, no matter what the price was.
We used 20% as our market share in the first round, it turned out that we under estimate the need for our traditional, low end and performance products.
Promotion and sales budget: we understood that the promotion and sales budget ware very important because it would influence the awareness and accessibility not only for this round but also for the next 7 rounds, so we spent $14,400,000 on promotion and sales.
Production: Our production schedule was based on the forecast of our sales, the capacity was more than enough, so we didn’t spend any money on buying capacity this year, but we spent $18,800,000 on automation rating, because it could help to reduce the labor cost.
Human resources and TQM: We didn’t notice the important role about training and recruiting spend and TOM were playing in reducing the cost and the R&D cycle time, so we didn’t spend any money on these …show more content…
Every time we reproduce the product, the age of the product would reduce half of the original age, which was 4.3 in the end of the round 4, but the age is the most important factor customers considered about the low end products, so after we reproduced this time, we would not change it anymore before the simulation end. For the other segments, we just used the ideal spot in the report for round