Bike Sector Simulation
This paper discusses the strategies and lessons that I learned from solo and competitive round simulations in the bike sector. I will also explain the changes from solo to competitive rounds. Finally, I will elaborate on how I can do things differently in the future.
My first strategy was to concentrate on the kids segment since it has the largest number of consumers. I also focused on adventurers and racers since they offer highest margins to the business and its suppliers. Regarding supply, I had 21 sports stores, 20 departmental stores, and 6 bike shops. These shops were positioned to facilitate better targeting of my markets. For advertisements, I used television, internet, and magazines. I also repaid most of my credit to minimize my interest charges.
The lessons that I learned was the importance of having a good distribution network to increase sales, such as by increasing the number of dealers. Additionally, I learned that I should use targeted marketing to better reach my customers. Finally, I learned that I should manage credit since it can help in the expansion of my operations.
When transitioning from solo to competitive simulation, I observed that my actions influenced my competitors’ move. In the solo simulation, only my actions affected how the market behaved, whereas in competitive simulation the activities of my competitors had an impact on the market and my business. In this case, they could open a new store or increase their marketing efforts to counter my moves.
In another simulation, I will use targeted marketing methods to increase my sales. Since the main contributors to my business are racers and adventurers, I can concentrate on them by making more advertisements using magazines and internets. Additionally, I will open more stores to serve them. Finally, I will raise capital using cheaper sources of financing such as equity financing. This strategy will help me to have enough cash flow to expand my business and enhance my marketing efforts.