Capsim Management Simulations, Inc.

Our Broad Cost Leader strategy focused on maintaining a presence in every segment while keeping costs low and offering improved size and performance, aligning with our mission of providing low-priced, valuable products to all stakeholders.

R&D implementation involves keeping the existing product line, maintaining presence in all segments, and managing automation levels to keep products up-to-date.

Marketing tactics include modest spending on promotions, pricing below average, and establishing a cost leadership position. We will also explore options to improve brand awareness and accessibility.

In production, we will significantly increase automation levels, adapting automation strategies per segment, and preferring second shift/overtime over capacity expansions.

Financially, we will rely primarily on long-term bond issues, using stock offerings when needed, and establishing a dividend policy and stock retirement when the cash position allows. We aim to maintain assets/equity between 2.0 and 3.0 and are open to leveraging.

We chose this strategy because it allowed us to cater to diverse market segments, maintain cost leadership, address manufacturers’ unique needs, balance resources effectively, and capitalize on market opportunities.

To gauge the effectiveness of our initial strategy, we considered factors such as financial performance, market share growth, and customer satisfaction.