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Back Bay Battery Paper

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Submitted By cwynar2
Words 468
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Steven Michael: BADM 367
Back Bay Simulation
The Back Bay Simulation taught me how to strategize in a managerial position. I was faced with tough investing decisions and what is known as the innovator’s dilemma. Deciding where to invest, either in Research and Development on existing technologies or in new technology, was the basis of the dilemma.
When I first started the simulation I didn’t exactly have a strategy, but I did not just invest blindly. I looked at the information provided; consumer desires, revenue, etc. News articles would pop up simultaneously, and I used those to decide when and what to invest in. For example, if one said that customers wanted batteries that last longer, I would invest in the battery life for that specific battery. The old battery was a lot more successful and desired in the beginning, so I tried to invest mostly in that battery because it seemed to be making the most revenue. I always tried to price above cost for both technologies as to not lose money on my products. The simulation then illustrated that the market price for the old technology would drop, therefore the sales would decrease forcing me to drop the price to keep up with the market. In the end, I didn’t have a very high net profit, but it was a profit none the less. I did not do so well because I didn’t support the growth of the new battery.
From the beginning, I should have invested my time and money on the upcoming battery, the exact opposite of what I did. The demand ended up decreasing for the old battery and switching to the new one. If I were to go through the simulation again, with the knowledge I have learned from class, I would invest in the new technology. The new technology would have acted as a disruptive technology and pushed the old battery out of the market. To successfully make the switch I could have priced below cost for the old battery to

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