Simulation Report

Simulation Report 01 2

Simulation Report

Introduction

In team D, utilization of StratSimManagement Simulation tool over since the first input in week one over the four periods has proven to be very effective in the understanding market environment, making projections, and remaining objective to the leading cause for action in the automotive industry. The primary strategy is to become an automotive leader while promoting quality and safety in car manufacturing (Gonzalez-Fuentes et al., 2021). The objectives that the team within the simulation effect had in mind includes creating minor updates for Defy in terms of interior, safety, and quality, opening new distribution centers, improving all cars in economy, family, truck, and luxury cars for “Deluxe” as part of competitive advantage for the company. Indeed, the best value for each period was designed effectively.

Strategy

The firm’s corporate generic strategy was to be the leading automobile firm in the industry to promote the quality and safety of car production (Gonzalez-Fuentes et al., 2021). The company would achieve this by narrowing down to the main market demands and needs and being ready to use innovation to gain a competitive advantage over other brands in the market and remain the business leader. It is commonly known that consumers look for safety measures, quality, and interior designs which offer luxury and comfort while using cars, and that’s the primary strategy while making innovations and areas for improvement. Thus, since each of the vehicles in the different classification such as luxury, economy, family, and truck have different needs and require additional input, in each segment, analysis was done based on the need for the consumers, value for the car, and competitors input in such segment to make sure the cars are outstanding while maintaining the role of business leaders which means attracting more customers, having the more significant market shares and proper market penetration. The overall strategy did not change as it touched all production elements to marketing, making it very effective.

The strategic action plan was mainly centered on objectivity and looking at the entire production force at all aspects through the decision making to see that every decision made impacts the long-term goal and impact for the organization in the market based on each car segment (Gonzalez-Fuentes et al., 2021). For instance, the first decisions were to invest in safety through technological innovation, then under product development, the approach taken as opening new development center. The firm utilizes direct marketing and advertising in the East and later in the South in consumer marketing. Product marketing for specific brands such as project Delite had minor upgrades and required marketing while based on quality input to meet consumer brands. For Detonka, marketing was mainly based on its performance power. New dealerships were opened, and manufacturing was maximized to remain competitive.

Based on the strategic action plan, all the moves explained above had measurable goals set and input as to why taking that action plan was the best choice of input, mainly in remaining competitive in the market. For instance, since decisions were based on market forces and forecasting, a car brand like Defy required only minor updates in the family segment where the car, despite being in a very competitive environment, the car segment had 33% of the entire market share and made the input balance, the company increased the advantages to 60% while decreasing promotion by 40% and maintained leading on the segment.

In segments such as luxury cars, consumers are looking for interior, safety, and quality; thus, all innovations were based on creating upstandingness in quality. The outcome is that the segment has remained a tremendous high-income enterprise. Therefore, for Deluxe luxury, in the first instance, the company tried to change the marketing theme by focusing on advertisements based on styling without making significant changes. It increased advantages by 37%. However, changes were made in the next improvement plan to increase its size, style, interior, and quality when focusing on electric launching in Y6, and the prices increased by $37,999. To make the outcome better for dealers, a discount of 15% was granted, which led to outstanding marketing and sustainable input in the marketing campaign and development.

To increase market share, the company had to open new distribution centers, where three dealers were set to open in the North and South, one dealer was set to open in the East, and one in the West. At the same time, as the dealers were opening up, the need to increase capacity was considerably high since the production pattern had not been changed even without the dealership. Thus, available production had to take a plus one in decisions. Opening all the branches creates a high market reach and makes it easy for consumers to get the best brands in the entire section, which keeps the overall strategy of being ahead of the competition real.

The other strategic decision was to improve all cars, even those with minor market share, by focusing on value for money in what the consumers are looking for and what the company is offering which increased sales even in the low segment brands (Gonzalez-Fuentes et al., 2021). For Deluxe in the market, quality and affordability are good equation that works best. Thus, setting the prices above $35K and the competitors having the same brand set between $40.3K and $40.7K will form the market as competitive as possible. The production cost also requires a reduction in production, which can be made through additional automaking to focus on what is best for the interest of consumers that takes 10% cost in building the current capacity. Thus, all changes that will be done in the production schedule will be done all around from pricing, dealership, marketing, and safety measures to ensure no fine is given.

The Detonka truck is among the brands that experienced innovation through safety and styling. The advantages increased to 35, which is a good input that placed the company in a great position when dealing with development options and brand inputs that serve best. It was a significant investment making all the changes from plant automation to ensuring all the vehicle segments were increased; thus, financing was 3M in credit at an interest of 3.5% and 3M loan repayment. The company also sold bonds of $1000.

Conclusion

The firm planned to remain competitive and maintain leadership in automotive marketing through quality and safety. A significant input made the company competitive through innovation based on technology to maintain safety, product development, consumer marketing, distribution, and manufacturing. The outcome has been outstanding, with the company increasing its revenue and strengthening its competitive position. It was a significant input to keep the company on its productive margin. Group members did all the strategies held via Zoom meetings on 18, 19, and 22 December 2021.

References

Gonzalez-Fuentes, M., Robertson, K. R., & Davis, J. C. (2021). Creativity as a Reflective Learning Exercise: Informing Strategic Marketing Decisions Through Digital Storytelling. Marketing Education Review, 1-9.