Overview This CAPSIM exercise revolves around the events following the breakup of a monopoly. The original company was broken up into five identical companies; Andrews, Baldwin, Chester, Digby, Erie, and Ferris. I am a part of Chester. All companies design, produce, and sell sensors. Company Overview Chester operates under the broad differentiator strategy.
In this strategy, we maintain a presence in all five market segments; traditional, high end, low end, performance, and size. Competing in all five segments gives our company the ability to capitalize on growth opportunities across a broader spectrum as opposed to focusing on few segments. Growth Strategy Chester looks to achieve growth mainly through product development and market penetration. We regularly use the Capsim Courier to learn customer demands and expectations. This is how we achieve effective product development. The Capstone Courier is also useful to see what our competitors are doing and where we can capitalize on their underperformances.
Market penetration is sought after by appealing to the customers’ demands. We take into account, not only price and performance, but the age and reliability of our products as desired by our customers. Up to the current point in the exercise, I have learned that customers’ expectations on performance and reliability are important, but not necessarily in every segment.