Results:
We got FIRST!! Our stock price went up to $1444 with second place having $1382. Somehow we managed to come from dead last so far to get into first, our team was pumped! But now how to keep it that way? Our SALTS were the only thing doing well this round with $32 million in contribution, while SAMA had $4 million and SACK lost $2 million. As well, our inventory for SAMA, SALT, and SACK was 19,000, 60, and 49,463 respectively.
Decisions:
We decided to drop SAMA's price by $4 to create more sales in a market where price was falling, and then dramatically cut SACK's price to $469 as Hi-earners had a lower willingness to pay than Pros. As well we only increased SALT's production by 4000 units, we cut SAMA's production in half, and we cut SACK's production by about 40,000 units. This was to address our growing inventory costs. We also knew that other teams had Vodites in the mix and we needed to keep up so we couldn't waste money on inventory. With this vodite knowledge we also went for a 2 round vodite implementation, paying half this period and finishing the other half next period. This cost us $3.5 million. Our sales force in this decision stayed relatively the same as period 4.
The blog of our experience in using Markstrat for our Commerce 363 class at UBC!
YEAH BABY! Don't mess with the A team! Way to go guys.
ReplyDelete"Sittin with the Sonites, Kickin it with the Vodites, gotta make our minds up, where will we invest?"
It seems like we have a decent lead on the other teams, we have to make sure we keep sinking money into R&D so we can get our vodites out and make a good return on our investment. Our new mathematical system to determine MDS dimensions seems to be working. Our product placement seems right on target and it is paying off in market share.
See you next week, with some strategy and critical thinking we can hopefully maintain this position!
GOOOOOO A-TEAMMMMMMM!!!!!!
ReplyDelete"Markstrat, Markstrat gotta get down with Markstrat!!!! We so excited, we so excited!!!"
We should meet up soon to discuss our next decisions so that we can maintain our number 1 status. This is also the last round where we have to put money into the process of releasing our vodites. When we finally finish paying off the vodites we can put more money into improving our other products!
Stay strong A-TEAM!!