BUS4098 Week 2
Emerging Patterns of Competition
In this simulation, as in all competitive situations, you need to assess your rivals' actions in each market. Price is one of the best
indicators of a �rm's market intentions. This is something �rms intend to do and is known as "price signaling." In this simulation,
price is often correlated with product traits such as the number of models, styling, quality, and status appeal. But this is not always
true in every dimension. For example, a �rm may advertise heavily with a celebrity and produce many styles to create the perception of a high-end shoe. But in reality, that �rm may only bring average quality products to the market. This is an effective
use of price signaling that may save money for the �rm, but if its rivals only focus on product quality, they may miss the true
intention of the �rm's strategy.
Looking for patterns to understand what rival �rms intend to do is one of the primary tools �rms use in almost every industry. An
important part of interpreting and understanding patterns is to understand that some aspects of the strategy may be more �exible
than others. Decisions that commit a �rm for long periods of time, involve large capital expenditures, or are only viable in one type of strategy are the best indicators of the �rm's future actions.
This simulation has some decisions that clearly fall into that category. Of course, this is true for your �rm as well as for your rivals.
Therefore, it is important to look at some of the larger, strategic decisions that �rms make in this simulation and how they create a
commitment to strategic postures that are hard to change.
Additional Materials
View a Pdf Transcript of Capital Spending Decisions
(media/week2/SUO_BUS4098%20Supplemental%20PDF%20for%20W2%20Capital%20Spending%20Decisions.pdf? _&d2lSessionVal=0ft6GVhg3S0Xbo6hhkhIX90kH&ou=91506)
View a Pdf Transcript of Commitment to Manufacturing Plans
(media/week2/SUO_BUS4098%20Supplemental%20PDF%20for%20W2%20Commitment%20to%20Manufacturing%20Plans.pdf?
_&d2lSessionVal=0ft6GVhg3S0Xbo6hhkhIX90kH&ou=91506)