The smartphone business simulation includes analysis of market segments, new product development and product launches, as well as discovering operating strategies for profitable market development. The typically short product life cycles of this high technology market as well as cannibalization effects within the product portfolio pose a particular challenge here.
Customer segments are characterized by three purchasing groups. The ‘early adopters’ demand ever new features. However, the largest share of buyers is waiting for products with a good price/performance ratio. A further customer group expects basic products with no frills and, as a result, as low-priced basic models as possible. Design products that are tailored to the specific needs of these segments, in order to achieve a high market penetration and market shares.
An enormous market, a multitude of competing products and the different requirements of the customer segments require a coordinated management of pricing, production capabilities and marketing activities.