Stratsim Performance Essay
Team Members: Timothy McKinney, Alesh Shah, Sami Belbase, Brian Muirhead, Kayleigh Ballantyne
Initial Marketing Strategy
For our initial strategy we wanted to choose a product line that would be most intriguing to customers in this poor economy. To initiate this we focused our products around better gas mileage, safety, and quality. In order to do this we needed to evaluate consumers’ needs and desires when making a high involvement purchase such as a car. We believe the best target market for this type of car would be a middle class family that does not have as much disposable income due to the recession in our economy.
After choosing key characteristics that we believed …show more content…
Sales between period 4 and 5 rose from $16,933 to $18,553, however due to an increasing, significant over capacity charge our net income was at a low of -$2151.3. Production and capacity were not considered in parallel. Periods 8 and 9 also showed over capacity problems, and negatively impacted our firm financially.
Evidently, there was a lack of experience curve and diseconomies of scale: this includes dealing with consumers (before purchase and post purchase experience) to producing cars and selecting target markets. None of