Today’s mobile phone markets are dynamic and fast moving. Technology advances constantly - this year’s hot product is next year’s standard, this year’s leader is often next year ́s follower. Constant innovation is an essential feature of these markets for successful companies.
“We eat our own children, and we do it faster and faster ... That's how we keep our lead. You need to design for immediate obsolescence” Andy Grove, Intel Corp
This innovative simulation features a number of key marketing concepts, including targeted market segmentation, phases in new product design, development and introduction, time to market, rapid product life cycles, designing for obsolescence in high technology markets, understanding cannibalization, planning for profitable market development and many more issues.
Our simulated mobile phone market consist of 3 major groupings of consumers, each having a finite number of members, and having a finite limit on the amount of money they are prepared to spend on mobile phones. You will need to understand the dynamics of these consumer groups, what their preferences are, and what they are looking for as they plan to buy one or more mobile phones. How do you capture as much of the available spend as possible, while still making a profit? Understanding the preferences of these groups and the universal parameters will help you design products to meet their needs. The better you do this the higher your market penetration and market share will be.
As new technology features become available for inclusion in new phones, so discerning phone buyers in the early adoption segment will migrate their preferences towards these. They will tend to abandon previous preferences, and later stage adopters will see these early phones as more acceptable options. Additionally, there will be a downwards price drift as a consequence of this migration process. Previously high priced, premium standard phones become more mainstream and can be offered at lower prices in the market.
This simulation helps you, your students or manager learners understand how business operates in the real world. Some of the issues you will cover are: