Capsim margin analysis answers

Capstone® Industry Conditions Report For C94032 Your instructor can customize the simulation scenario. The information below is specific to your industry. Printable and Downloadable PDF Version of This Report The sensors your company manufactures are incorporated into the products your customers sell. Your customers fall into five groups which are called market segments. A market segment is a group of customers who have similar needs. The segments are named for the customer's primary requirements and are called: Drift Rates Each year, the segments drift the length of the hypotenuse of the triangle formed by customers' desire for smaller and faster products. Table 1 Segment Circle Drift Rates: Every year, customers demand increased performance (Pfmn) and decreased size. 1 of 8 Capstone® Industry Conditions Report For C94032 demand increased performance (Pfmn) and decreased size. Note that the drift rates vary for each segment. Pfmn Size Traditional +0.7 -0.7 Low End +0.5 -0.5 High End +0.9 -0.9 Performance +1.0 -0.7 Size +0.7 -1.0 Segment Centers Table 2 Segment Centers at the End of Each Round: As shown in the Perceptual Map Form above, size is on the vertical axis and performance (Pfmn) is on the horizontal axis. Traditional Low End High End Performance Size Round Pfmn Size Pfmn Size Pfmn Size Pfmn Size Pfmn Size 0 4.4 15.4 1.9 17.9 6.9 12.9 7.4 17.4 2.4 12.4 1 5.1 14.7 2.4 17.4 7.8 12.0 8.4 16.7 3.1 11.4 2 5.8 14.0 2.9 16.9 8.7 11.1 9.4 16.0 3.8 10.4 3 6.5 13.3 3.4 16.4 9.6 10.2 10.4 15.3 4.5 9.4 4 7.2 12.6 3.9 15.9 10.5 9.3 11.4 14.6 5.2 8.4 5 7.9 11.9 4.4 15.4 11.4 8.4 12.4 13.9 5.9 7.4 6 8.6 11.2 4.9 14.9 12.3 7.5 13.4 13.2 6.6 6.4 7 9.3 10.5 5.4 14.4 13.2 6.6 14.4 12.5 7.3 5.4 8 10.0 9.8 5.9 13.9 14.1 5.7 15.4 11.8 8.0 4.4 The information in Table 2 reflects the segment centers at the end of the round. Therefore, the Round 0 positions can be seen as the Round 1 starting positions, Round 2 positions can be seen as the Round 3 starting position, etc. Each month during the simulation year, the segment drifts 1/12th of the distance from the starting position to the ending position. Ideal Spots Table 3 Ideal Spot Offsets: Customers prefer products located this distance from 2 of 8 Capstone® Industry Conditions Report For C94032 the center of the segment circle. Pfmn Size Traditional 0.0 0.0 Low End -0.8 +0.8 High End +1.4 -1.4 Performance +1.4 -1.0 Size +1.0 -1.4 The information in Table 3 shows the Ideal Spot "offsets" or distances from the segment center. The ideal spot is that point where, all other things being equal, demand is highest. It is different from the segment center. Why are some ideal spots ahead of the segment centers? The segments are moving. From a customer’s perspective, if they buy a product at the ideal spot, it will still be a cutting edge product when it wears out. 2 Segment Sizes and Growth Rates At the beginning of the simulation, Traditional and Low End sell more units than the high technology segments, High End, Performance and Size. Page 10 of the Capstone Courier, the Market Segment Report, displays total industry sales. Each market segment grows at a different rate. Table 4 lists the beginning segment growth rates for your industry. The growth rates might change from year to year.