Today’s mobile phone industry is a great example of product launch in a VUCA environment. Continual and disruptive technology advancements and a capricious market make for interesting dynamics. This year’s hot product is next year’s standard. This year’s innovation leader might be next year’s follower. Successful companies must learn to operate with an agile strategy.
This innovative simulation features targeted market segmentation, phases in new product design, development and introduction, time to market, rapid product life cycles, designing for obsolescence in high technology markets, understanding cannibalization, and planning for profitable market development.
Our simulated mobile phone market defines consumer market segments based on population and ability to spend. Realistic dynamics around customer preference changes, eroding value, and subscription services are modeled in the simulation. With our Mobile Phone Development Simulation, goals are based on a balanced scorecard of KPIs and require both short- and long-term planning. Market dynamics are applicable to other industries that are experiencing major industry shifts. For example, this simulation has been used successfully in the health care business where the Affordable Care Act is changing consumer profiles and there is a subscription-based service.
- Manage new product development process
- Understand product attributes: match design to targeted customer segments
- Fraternize with financial terms and principals: Debt and Equity Financing, Credit Quality and Rating, Coverage Ratios, Corporate Valuations, EPS and PE values, Cost of Capital, WACC, Economic Value, NPV, Shareholder Value and Financial Statements
- Balance economic factors: Supply and demand, cost ratios and cost curves, economies of scale and scope, MEPS, experience and cost curves
- Market products: launch/relaunch/withdraw, manage the budget
- Operate effectively as a team