presentation visual-strat business game. entering the global market a unique product manufactured in...

PRESENTATIONPRESENTATION

VISUAL-STRAT BUSINESS VISUAL-STRAT BUSINESS GAMEGAME

EnteringEntering the Global Marketthe Global Market

A unique product manufactured in Europe . . .

The Motorcycle!!

Three MarketsThree Markets

1) the European market, where your company is already a leader

2) the North American market, where a dealer network has just been set up

3) the Global market, which will be accessible after three periods of prospecting

Gaining Market Shares Gaining Market Shares

• by being the most aggressive in terms of prices and advertising

• by prospecting new markets in the Rest of the World

• by developing one’s brand image due to sponsoring

Finding New CustomersFinding New Customers

Prices (short-term): action at N

• Advertising budget (mid-term): action at N, N+1,N+2

• Prospecting (mid-term): action at N+4

• Sponsoring (long-term): action at N+4 . . . N+10

Finding New Customers Finding New Customers

• By entering in the global zone after a minimum of three years of exploring new market or prospecting you have to allocate at least 6%

of the turnover in prospecting

• In period 4, the prospecting budget must be more than the competitors’ average.

• The prospecting effort must be continued even after achieving the opening of this market.

Finding New CustomersFinding New Customers

By making bids if your company is already known

• This is an order to satisfy the next period if your offer has been selected.

• It is valid only for one period.• Conditions to partaking:

You have to allocate a budget of at least 5% of the turnover in sponsoring.

The Police

Finding New Customers Finding New Customers (Joint Venture)(Joint Venture)

By signing agreement with local partners= COMMERCIAL INVESTMENT

•using the local know-how•creating local jobs•decreasing the customs fees

Only the two most efficient and fastest companies will be able to do it.

Product Life CycleProduct Life Cycle

Launch and growth

Phase 1 Phase 2 Phase 3

Maturity

Sale

s

Time

• Invest in new plants to satisfy the demand.

Adapting Your Offer to Adapting Your Offer to the Demandthe Demand

• Do not produce useless stocks and close plants if necessary.

additional information on: market trend, strategies of competitors,

cost prices of the products etc. first year for free !!!

Buy information about market trend!

Adapting Your Offer to Adapting Your Offer to the Demandthe Demand

From period 4, do not hesitate to do subcontracting

Adapting Your Offer to Adapting Your Offer to the Demandthe Demand

You have stocks:

On the contrary, your production and stocks are not sufficient:

Be a SELLER

Be a BUYER

Subcontracting requires an agreement between two partners about volumes and pricing.

Control Your CostsControl Your Costs

by producing at full capacity

by improving the design with research and development

by maintaining the production tool

Adapting Your Production Adapting Your Production CapacityCapacity

by proposing flexible working contracts (overtime hours, limited period contracts)

by developing investment or closing existing production lines

by subcontracting to other companies (from period 4)

Managing Financial Managing Financial ResourcesResources

• Loan

• Draft

• Capital Increase

• Placement

Preparing your decisionsPreparing your decisions

Update the data of the scenario

Download the Excel file.

These values must be checked onthe main page of www.visual-strat.com.

Define the right price!

Gain Market Share:

Invest in Advertising

Invest in Prospecting (6% of turnover)

Invest in Sponsoring (5% of turnover)

Do commercial investment

Invest in new plants (from 1 to 5)

Control your Production and Stock : make deals with your competitors (sale & buy)

Buy Market Study and Strategic Information on Competitors

Distribute dividends to make your shareholders happy!

Key DecisionsKey Decisions

And now . . .And now . . .

Let the competition begin!