MODULE 4 -SLP | STRATEGY IMPLEMENTATION AND MONITORING
MODULE 4 -SLP
STRATEGY IMPLEMENTATION AND MONITORING
The Module 4 SLP requires that you run a simulation titled: “The Platform Wars: Simulating the Battle for Video Game Supremacy.†Visit the Forio site and access the simulation.
As the Chief Executive Officer (CEO), it is
your task to make decisions one year at a time. As you do so, note how key data
are changing, and take note of how your pricing, changes made to royalties, and
new game subsidies change your profits and your market share. You may need to
go through at least one practice run of the simulation in order to become
familiar with it.
At the start of the simulation, your market
share is 50%. The price of your video game console is $250. Note that your
competitor’s market share is 50%, but your competitor’s console price is
$261.00 (hint: you are vastly underpriced to begin the simulation).
One way of becoming familiar with the
simulation is to change only the value, leaving the others constant. This will
isolate the impact of one variable and will give you a sense of how the change
in a single variable impacts revenue, market share, etc. (use the Dashboard and
the financial statements to determine this).
For example, if you leave all variables
unchanged in Year 1 (price = $240; Game titles to subsidize = 3, and Royalties
= 15%), your market share becomes 69% at the end of Year 1 (and my net profit
is $48.0M).
In contrast, if you reduce the console
price to $230, your market share will become 71% at the end of Year 1 (net
profit will be $33.6M). Importantly, if you increase the console price to $330,
your market share at the end of Year 1 is 58%; however, your net profit is
$140.8M.
As the CEO, your task is to find the best
combination of changes in the three variables that both increase your market
share and earn a maximum net profit. Remember that the changes are relative;
there are no right or wrong answers.
Be sure to take note of how the statements
may be used to “control†your strategy. Remember that you need to cover your
costs while simultaneously turning a profit and increasing your market share.
For this SLP assignment, follow the assignment steps below for your three
full-page paper with two scholarly sources.
- -Go to https://forio.com/simulate/mit/video-game/simulation/
- =Click on “Play as an individual.â€
- -Enter your first name as the “Screen ID,†then click
“Login.â€
In this web-based simulation, run the
simulation a minimum of three times, noting the changes made each year, as well
as your final results. Each year, you have three decisions to make:
- a)Determine the selling price of the video game console.
- b)Determine the number of video games that your company will
subsidize to enhance the development of new video games (and that can be
played on your company’s video game console); be sure to note that the
subsidy of each new game costs you $16.2M each year; and
- c)Determine the royalty percentage you will require game makers
to pay you (the higher the royalties, the more revenue you earn on new
games, but the less inclined game makers are to develop new games).
- Develop and discuss in your paper a table that shows the
results from each simulation.
SLP ASSIGNMENT EXPECTATION:
- The minimum
length requirement for this SLP Assignment is 3 full pages (excluding
Title and Reference pages) to include 2 scholarly sources
- The 3 full pages will include an introduction, a body of work with 2 scholarly sources cited to support your work, and a conclusion (that aligns with your purpose statement, summarizes each section, and then wraps up into a final thought).