PDA Slim 4 Essay Example | Topics and Well Written Essays - 750 words

PDA Slim 4 - Essay Example I decrease the price of X5 item 10%, increased the X6 by 10% and decreased the X7 price by 20%. During this simulation run I accelerated the X7 results and was able for the first time to obtain positive profits for X7 in the first round for the first time. I was able to do by lowering the price in the initial run by 20% for an overall price of $136. The market saturation growth doubled from 4% to 8%. My cumulative profits after the first round were $341 million. After completing the first round I studied the behavior of the X5 marketplace. I noticed by analyzing the historical data that the last two times I ran the simulation after the second round the results for the X5 product were negative. Independent of the price movement upwards or backwards the product became unprofitable and saturated. Based on this information I learned that this was a clear indicator that the best course of action was to eliminate the product out of the market since its existence was detrimental to the cumulative profits of the company. The profits I achieved during this round amounted to $194 million of which the X6 contributed $107 million, while the X5 provided $87 million. In the third round of this simulation I noticed that the internal information provided by the advisors of handheld became more useful and insightful. I would imagine the reason the information became more useful is that the management of the company now had more time to concentrate of their efforts in a more simplified strategy since more time could be spend in analyzing each product now. For example for the X6 the advisor told me that the customers pay more the X6 product than other comparable products. This originally made me raise the price of the item. Along with this comment another advice came in saying that the competition for the X6 has comparable products with more features. The added information was an indicator that a small decrease in price would provide greater value for the customers. I