CEO - SHAM LAKSHAMAN

Strategy for Capsim C M O – S H R E YA S H A R M A

COO – GURSIMRAN KAUR
C F O – V I D H I B A LWA N I
- By Group 5 (Eerie) H R H E A D – S H U B H A M J PA M PAT T I WA R
T Q M H E A D – S A M E E R WA L I A
Strategy For The Simulation:
Niche Differentiator (High technology)
Our strategy was to focus on the high technology segments (High End, Performance and Size) as
the company will gain a competitive advantage by distinguishing its products with an excellent
design, high awareness, easy accessibility and new products
Moreover, we focused on developing an R&D competency that will keep designs fresh and
exciting. Products will keep pace with the market, offering improved size and performance
We kept prices above average and expanded capacity as it generates higher demand
R&D Decisions
• Since the initial rounds our strategy was to shift all current products for placement within the fine cut circle
• We launched the product ‘Eicher’ in traditional segment in order to capture the market share of that segment
• We always tried to reposition our products towards the long-term prospective

MTBF Performance & Size

• Our strategy from the initial rounds was to set the MTBF
as per the weightage of importance given to it in the
CAPSIM Courier
• For the performance segment, we took the maximum
MTBF value since the weightage of the MTBF was
highest
• We considered the values for Performance and Size for each
company by looking at the Industry Condition Report for
customers’ requirements for each segment of the market.
• As low-end segment customers want low-priced product and
the age can be a bit high, so we have not upgraded the low-
end segment very often.
• The high-end segment customers want the best technology in
products and new design every year, so for this segment, we
took maximum value for performance.
Marketing Decisions
Round Market share

0 16.67%
Promotion Budget (How aware
1 19.51%
Price: Kept prices slightly lower are consumers about your
2 19.08% than maximum possible to keep products?): Took into account
the competition in check and customer awareness (from the
3 23.87%
make suitable profit. courier report) for each type
and had set the budget
Market Share
30.00%

25.00% 23.87%
Sales Budget (How easy is it for
consumers to buy your Forecast Sales: Assuming
20.00% 19.51% 19.08% products?): Took into account market to grow at 20%, we kept
customer accessibility (from the the forecast to be 120% of the
15.00% courier report) for each type previous sales.
10.00%
and set the budget.

5.00%

0.00%
1 2 3
 Production Focus was to increase market share and get more

Decisions sales.

Plant Utilization We estimated a growth rate of approximately 20%.

Products Round 0 Round 1 Round 2 Round 3

Eat 66% 86% 105% 136%

Ebb 129% 139% 130% 117% We focused on adding capacity because it takes a
year to go into effect. Moreover, the increased
Echo 45% 85% 103% 125%
capacity helped in the production in future years.
Edge 73% 76% 108% 163%

Egg 63% 81% 54% 120%

We focused on increasing automation to make

labor cheaper.
 Screenshots for quick reference

Sales
250,000,000

200,000,000

150,000,000

100,000,000

50,000,000

0
Round 0 Round 1 Round 2 Round 3

Sales
Finance Decisions Our strategy from the beginning was to capture the market
share by investing a large amount from financing activity. We
achieved the same by capturing 23.87% of the total market
share.
ROE
25.00% 23.30%

20.00%

15.00% Sales numbers were highest compared to our competitors

10.00% 8.70% amounting to $208,936,294 after round 3.

5.00% -2.10%
0.00%
R -0 R -1 R -2 R -3
-5.00%

-10.00% Cash flows were positive in all rounds but our working capital
-7.50% was way below the standard mark therefore we borrowed
from long term debt to improve our working capital. Out of
total debt, more than 40% is our long-term debt.
Profits
R-3

R-2
Rounds

R-1
We also issued stock as we were investing to capture market
R-0 share. The leverage ratio was above 2 therefore, we were in a
0 5,000,000 10,000,000 15,000,000 comfortable position to issue stocks.
Profits (in dollars)
 THANK YOU

“The essence of strategy is choosing what

not to do”
- Prof. Michael Porter