GloBus simulation

InGLO-BUS simulation, companies compete to gain a market share in thedigital camera industry. The market has four regions namely:Europe-Africa, Latin America, Asia-Pacific and North America. CompanyF only has 6.3% of the entry-level and 12.0% of the multi-featuredcamera market share[ CITATION Tho16 l 1033 ].In this essay, theauthor will discuss Company’s F overall strategy in the digitalcamera industry. The strategy for the entry-level and multi-featureddevices and, finally discuss the strategy for the four regionalmarkets.

Onthe onset, the overall strategy was to become a market leader in allthe four regions of the market. In order to achieve this, Company Frealized that it would have to execute a different strategy for bothof its products. The one size fits all strategy could not be used aseach product has a different target market. Two strategies were putin place in order to meet the needs of both the low end and the highend market segments. A low cost leadership strategy was suggested forthe entry-level camera while the best cost provider strategy wasembraced for the multi-featured camera. The low end users areconcerned with the price while the high end users are more concernedabout the quality of the camera.

Thetwo products targeted different consumers. The management thereforefound it fit to use different strategies for the products. A lowcost leadership strategy was put in place because the market for sucha product is price-sensitive and therefore low charges are apriority. The clientele for entry-level cameras are more concernedabout the price as opposed to the quality of the product. In otherwords, they would like a good camera at a low price. On the contrary,the clientele for multi-featured users is comprised of professionalsand people who have knowledge of the devices. Therefore, the usersare concerned with the features and qualities of the camera. Thebuyers in this segment appreciate value for their money.

Thereare four geographical regions in the industry. The managementrecommends using different strategies on the four regions since eachmarket is unique. Several aspects of the markets were put intoconsideration before arriving at a region’s strategy. The companyconsidered the urban vs. rural population, the household incomes, thecultural and ethnic backgrounds as well as the demographic patternsof all the four regions. A mix of both the low cost strategy and bestcost provider strategy was suggested for both the Europe-Africa andAsia-Pacific regions. In the two regions, the market is diverse interms of culture and most of the nations in the region are emergingeconomies. In addition, the two regions have the highest populationof the youth as compared to the other regions. Both strategies shouldcater for the needs of the new camera users who are keen on usingless money while also addressing the needs of sophisticated camerausers. The best cost provider strategy was recommended for both LatinAmerica and North America regions. The regions are not diverse andmost countries in the region are already developed. However, themanagement is keen on putting more efforts towards the multi-featureddigital camera market as it is performing better than the entry-levelcamera [ CITATION Vau13 l 1033 ].Inaddition, the Company would like to take advantage of the differencein profit margins in favor of the multi-featured camera.

Reference

Thompson, A. A., Stappenbeck, G. J., Reidenbach, M. A., Thrasher, I. F., &amp Harms, C. C. (2016). GLO-BUS: Developing Winning Competitive Strategies. Retrieved August 8, 2016

Vaughan, E. (2013). FT Essential Guide to Developing a Business Strategy: How to Use Strategic Planning to Start Up or Grow Your Business. London: Pearson Education Limited.