Strategic Management Task 1
Strategy
Simulation Results
For the simulation my company name was H Company. Below you will find the results to the 8-year simulation. H Company has been highlighted in the majority of screen-shots.
Competitive Strategy
Thompson, Peteraf, Gamble, and Strickland (2012) found that competitive strategy depend on whether a company’s target market is narrow or broad, and whether a company is seeking competitive advantage through low-cost or product differentiation. These two factors reveal five generic competitive strategies. The five strategies are Overall Low-Cost Provider Strategy, Focused Low-Cost Strategy, Broad Differentiation Strategy, Focused Differentiation Strategy, and Best Cost Provider Strategy. H Company used Broad Differentiation Strategy, which Thompson, Peteraf, Gamble, and Strickland (2012) define as a strategy seeking to differentiate the company’s product offering from rivals’ with attributes that would appeal to a broad spectrum of buyers. H Company attempted to achieve broad differentiation by investing in private label production. The goal with investing in the private label market was for H Company gain market share due to the differentiated product. When moving through the simulation, I utilized the production section to attempt to achieve differentiation in my products. In addition to producing private label offerings, I also increased quality of my materials used in my shoe lines. Increasing the quality in the shoe lines came at a higher cost, which I was hoping would be offset with more sales at a higher premium. Unfortunately, investing in private label production did not yield the financial results that were hoped for. In fact, as of year 18’s Income Statement (above), private label production brought in no sales. In theory, the idea of increasing private label production is a great choice. However, the simulation proved that private label offerings were not what the market
Simulation Results
For the simulation my company name was H Company. Below you will find the results to the 8-year simulation. H Company has been highlighted in the majority of screen-shots.
Competitive Strategy
Thompson, Peteraf, Gamble, and Strickland (2012) found that competitive strategy depend on whether a company’s target market is narrow or broad, and whether a company is seeking competitive advantage through low-cost or product differentiation. These two factors reveal five generic competitive strategies. The five strategies are Overall Low-Cost Provider Strategy, Focused Low-Cost Strategy, Broad Differentiation Strategy, Focused Differentiation Strategy, and Best Cost Provider Strategy. H Company used Broad Differentiation Strategy, which Thompson, Peteraf, Gamble, and Strickland (2012) define as a strategy seeking to differentiate the company’s product offering from rivals’ with attributes that would appeal to a broad spectrum of buyers. H Company attempted to achieve broad differentiation by investing in private label production. The goal with investing in the private label market was for H Company gain market share due to the differentiated product. When moving through the simulation, I utilized the production section to attempt to achieve differentiation in my products. In addition to producing private label offerings, I also increased quality of my materials used in my shoe lines. Increasing the quality in the shoe lines came at a higher cost, which I was hoping would be offset with more sales at a higher premium. Unfortunately, investing in private label production did not yield the financial results that were hoped for. In fact, as of year 18’s Income Statement (above), private label production brought in no sales. In theory, the idea of increasing private label production is a great choice. However, the simulation proved that private label offerings were not what the market