Markstrat Final Management Report
FINAL MARKET CONDITIONS
Sonite Market has turned out to be a mature market from a growth market at the end of the simulation where there are 4 firms with 15 different brands. As shown below on chart 1 the profitability decreases in mature market. The same happened for Markstrat, price war took us low margins.
Chart 1
Vodite Market has turned out to be a growth market from a new market in the last periods where all 4
Sonite firms could enter with totally 8 different brands.
Each firm’s market share is as below on Table 1 and trends in Graph 1;
Table 1
FIRM
TOTAL P0 P1 P2 P3 P4 P5 P6 P7
A 25% 24% 18% 18% 24% 27% 33% 37%
E 25% 24% 32% 22% 27% 31% 25% 27%
I 25% 23% 21% 23% 23% 18% 15% 12%
O 25% 29% 29% 37% 27% 24% 27% 24%
SONITE P0 P1 P2 P3 P4 P5 P6 P7
A 25% 24% 18% 21% 25% 26% 29% 32%
E 25% 24% 32% 25% 25% 23% 27% 26%
I 25% 23% 21% 26% 25% 25% 23% 25%
O 25% 29% 29% 27% 25% 26% 22% 16%
VODITE P0 P1 P2 P3 P4 P5 P6 P7
A †††0% 20% 28% 40% 41%
E †††0% 35% 51% 22% 28%
I †††0% 14% 3% 4% 1%
O †††100% 31% 19% 34% 30%
MARKET SHARE
Graph 1
After 6th period results, the revenues and contribution margins of each firms are shown in Appendix 1.
Firm A is the leader of the market in terms of overall market share, revenues and net contribution.
SUCCESS IN ACHIEVING OBJECTIVES
Main objective of our Firm A in Sonite market was to create sustainable profit to satisfy sustainable growth with high margins, market share and enough budgets for Vodite Entry. In order to achieve our objective, inspired by Porter’s focusing on competition and Ohmae’s Consumer focus, our strategy was to differentiate our brand & upgrade our products based on our target segments’ needs.
To achieve our objective, although we had a new market Vodite where there was a huge opportunity of being a market leader by spending considerable amount of budget, we allocated some of
Sonite Market has turned out to be a mature market from a growth market at the end of the simulation where there are 4 firms with 15 different brands. As shown below on chart 1 the profitability decreases in mature market. The same happened for Markstrat, price war took us low margins.
Chart 1
Vodite Market has turned out to be a growth market from a new market in the last periods where all 4
Sonite firms could enter with totally 8 different brands.
Each firm’s market share is as below on Table 1 and trends in Graph 1;
Table 1
FIRM
TOTAL P0 P1 P2 P3 P4 P5 P6 P7
A 25% 24% 18% 18% 24% 27% 33% 37%
E 25% 24% 32% 22% 27% 31% 25% 27%
I 25% 23% 21% 23% 23% 18% 15% 12%
O 25% 29% 29% 37% 27% 24% 27% 24%
SONITE P0 P1 P2 P3 P4 P5 P6 P7
A 25% 24% 18% 21% 25% 26% 29% 32%
E 25% 24% 32% 25% 25% 23% 27% 26%
I 25% 23% 21% 26% 25% 25% 23% 25%
O 25% 29% 29% 27% 25% 26% 22% 16%
VODITE P0 P1 P2 P3 P4 P5 P6 P7
A †††0% 20% 28% 40% 41%
E †††0% 35% 51% 22% 28%
I †††0% 14% 3% 4% 1%
O †††100% 31% 19% 34% 30%
MARKET SHARE
Graph 1
After 6th period results, the revenues and contribution margins of each firms are shown in Appendix 1.
Firm A is the leader of the market in terms of overall market share, revenues and net contribution.
SUCCESS IN ACHIEVING OBJECTIVES
Main objective of our Firm A in Sonite market was to create sustainable profit to satisfy sustainable growth with high margins, market share and enough budgets for Vodite Entry. In order to achieve our objective, inspired by Porter’s focusing on competition and Ohmae’s Consumer focus, our strategy was to differentiate our brand & upgrade our products based on our target segments’ needs.
To achieve our objective, although we had a new market Vodite where there was a huge opportunity of being a market leader by spending considerable amount of budget, we allocated some of