At the outset of my team’s discussion of strategizing about our plan, we quickly recognized that even once we decide upon an approach to unify our efforts within Capsim, we must hold that plan loosely, ready to adapt to market forces and changes. A strategy should unite us moving forward, not shackle us to our understanding of the market in week one. That said, we decided to pursue a niche differentiation strategy, targeting the high-tech market. Our primary focus is differentiating ourselves from competitors by having the new, small, and reliable sensors, while still working to keep research and development project times reasonable and production costs competitive. In the early rounds, our high-tech products could end up falling into the low-tech category (as the market shifts) at which point we may need to adjust pricing on those product(s) to compete with cost-leaders. In any eventuality, we want to make sure we concentrate our spending on capturing marker share for high-tech sensors. By differentiating our products, we stand to capture customers overlooked by the low-cost focus. …show more content…
For instance, when a company deals with high-costs of research and development and production, they increase their opportunity costs. It becomes more difficult to create new products, phase out old sensors, and change rapidly. Consequently, Team Baldwin will carefully weigh all variables before sinking dollars a product upgrades or development. Other risks become apparent when considering Porter’s Five Forces Framework (Capsim Management Simulations (2016). We find that in Capsim, Baldwin’s strategy is vulnerable to the threat of substitute products and competitive rivalry. Other teams will be seeking to differentiate their products just as Baldwin will and we must be prepared for contending with similar products in the marketplace. To overcome this obstacle, we