ABSTRACT
Phone ventures has the philosophy of
producing our goods with passion, ethical
materials and treating those who make
them with dignity and respect. we as a
company work with suppliers of
smartphone equipment various countries
which share our commitment.
faiza rasheed
faiza rasheed
SIMULATION UEL phone Ventures 2020
REPORT
PHONE VENTURES
Phone Ventures
Simulation Game Report
Phone Ventures/ UEL phone Ventures 2020
Executive Summary
The business Phone Venture is one of the rivalry in the 'Strategy Simulation Game'
sales of smartphone facilities.Our companies firm conviction is that our valued
clients must be supplied with genuine quality smartphone with latest technology by
suppliers that share our values and the importance of our smartphone products. The
future of an enterprise depends from its plans. "Strategy is an organization's long-
term leadership.
The present report compares and measures our company's current and past strategic
position as Phone ventures against the success of other competitive organizations
in the "Strategy Simulation Game." This outlines the company's mission, vision,
goals and different strategic instruments, such as the SWOT analysis, growth
strategy or thePorter' s Five Forces analysis, which the organization uses in its
decision-making processes to execute anethic business successfully.
Introduction
This study provides an summary of the business simulation game that our
community has been in over the past 5 years. Our business, which was founded by
five members, is called Phone Ventures. Throughout the beginning of this
simulation game the report shall cover decisions taken yearly by company
executives, based on an internal and external review and our overall strategy.
Every year, we evaluate and equate our decisions to the decisions of our
competitors. The results obtained will allow us to focus again on how well we did
in the following week or what we might do better.
Phone Ventures
We will look into the performance of our company over past five years and discuss
it according to our vision, competitors, our plans, our profit and loss also. We will
also discuss our future plans. We will dicuss all these values in year wise manner
so we will understand better in this report performance over past years , current
performance and future plans.
Vision
7 billion phones for 7 billion people. We are trying to capture the market
for every segment. Sustainable future over profits is our priority.
Transforming human experience is our criteria. Affordable phones for
everyone
YEAR 1 Perfomance:
Competitive strategy
Combination of all the cost, product leadership, and Customer Intimacy.
Not confined to focus on 1 specific market segment.
Developing a respectable brand image.
Providing the best quality at reasonable prices.
SWOT
STRENGTH -. We will provide fast processing and good quality phone at a
reasonable price.
WEAKNESS – No rarity of the product
OPPORTUNITIES - Target every market ie. Underdeveloped, developing, and
developed markets.
THREATS- Competition will be wide as we will be competing with all the
available cell phone companies.
Phone Ventures
There will not be any rarity of our product.
Targets
Market leader in quality with 1.00 shares- We wanted to achieve the best of the
qualities.
In second year our price was reduced so our main target was Customer.
Achieve net profit € 90,090,170.28And in second year quality was also
improved against cost so Miantaining quality was also target.
Global market leader 1.00 market shares.
The education level of staff – 72.75%percent throughout
Solvency was 90.87%.
LONG TERM GOALS
Highest market share
Sustainability
Quality
GROWTH
Penetration Market- Increasing market size by entering all the possible markets
available.
SUPPORTING ANALYSIS
Porters 5 forces
Force 1- The degree of rivalry- In the industry there are 6 direct competitors
Force 2- Threat of entry- We are entering Netherlands, Belgium, and the
UK as we see potential customers in all the market segments we want to
achieve our targets in.
We have the resources to enter the market.
Phone Ventures
Force 3- Substitutes- Company has a huge threat of substitute company's
phones.
Force 4 – Buyer power – It is more as we are a new company in a new
country.
In the phone industry, buyer power is more.
Force 5- Supplier power – There are a huge number of suppliers in the Asia
market and hence the supplier power will always be less as there is a
substitute for suppliers.
YEAR 2 Perfomance:
Competitive strategy
In second year cost leadership strategy started experimenting loss as the price was
reduced and quality remained high. So using this strategy company faced loss.In
first year competition was very less.
we had issues with delivery from second year specially in highly populated
countries like India and China.
So in the second year made changes in delivery options.
But our concentration was on acquiring quality raw materials at the lowest price.
SWOT
STRENGTH -. We have evaluated our strengths and weaknesses and come to the
conclusion that we can provide a wide variety of products with high speed.
WEAKNESS – The brand will not be rare as we will reach every market and
standards
OPPORTUNITIES - All the countries have a very good percentage of price
market which is our target market, making us global market leader.
Phone Ventures
THREATS- As in second year cost was reduced, Customer trust- They will think
that lower the cost inferior the quality.
Targets
In year our price was reduced so our main target was Customer.
Market leader in price segments. 1.29
Achieve net profit € 258,883,898.9
And in second year quality was also improved against cost so Miantaining quality
was also target.
Global market leader 1.00 market shares.
The education level of staff – 82.11%percent throughout
Solvency was 83.79%. solvency decreasded as compared to first year.
LONG TERM GOALS
Highest market share
Sustainability
Quality
GROWTH
Changed phone star from 3 to 4 star and with improved qyality product entering
exisiting and new market as well.
SUPPORTING ANALYSIS
Porters 5 forces
Force 1- The degree of rivalry. As we entered in ist year to new markets , Netherlands
and Belgium etc.we gained the huge market share because there was no good supplier,
there is a huge threat of new companies entering the market.
Phone Ventures
In first year competition was less but in second year we captured new markets like india
and china and also faced problems in delivery products in huge countires like india and
china .
Force 2- Threat of entry – we are extending our market to Germany, France, Monaco,
Australia as there is a huge customer base and potential buyers. We are not entering
Japan market as we are not supplying the best quality phones.
Force 3- Substitutes- In second Company has a huge threat of substitute company's
phones.
Force 4 – Buyer power – It is more as we are a new company in a new country.
In the phone industry, buyer power is more.
Phone Ventures
Force 5- Supplier power – There are a huge number of suppliers in the Germany,
Monaco and austrailian market and hence the supplier power will always be less as there
is a substitute for suppliers.
YEAR 3 Perfomance:
Competitive strategy
In 3rd year we implemented focus staretegy as we again change our market ro 3star, as in
4 star we faced loss.As we were giving low cost high quality. Now we focued on having
advantage in our target segments with cost to overcome the loss.
3rd year sufferred losses and hence changed the phone quality to 3 star due to our gross
margin being less
We take special needs of customer under consideration.
SWOT
STRENGTH -. Invested good amount of R&D resources on decreasing the
product cost, hence we have a product for best price letting us offer the best price
to customers and achieve net profit
WEAKNESS – we are targeting price market and giving the best price is reducing
the product costs and we aren't able to give very good quality because of pricing
issues.
OPPORTUNITIES - Diversity in market- We can tareget the underdeveloped,
developing and developed market
THREATS- Competition- Will be wide as we will be competing with all the
available 3 star cell phone companies.
Targets
In year our price was reduced so our main target was Customer.
Phone Ventures
Market leader in price segments. 1.29
Achieve net profit € -265,007,282.48
And in second year quality was also improved against cost so Miantaining quality was also
target.
Global market leader 1.18 market shares.
The education level of staff – 91.01%percent throughout
Solvency was 78.17%solvency decreasded as compared to second year.
LONG TERM GOALS
Highest market share
Sustainability
Quality
GROWTH
Changed phone to 3 star and with improved quality product entering exisiting and new
market as well.
With this, your new products you are going to approach new markets and target groups.
A risky strategy; but necessary if existing activities are at risk.
3 star mobile was with less feature but provided at very low cost so low budget customer
can easily buy .
SUPPORTING ANALYSIS
Porters 5 forces
3rd year - Degree of rivalry – we gained the huge market share because there
was no good supplier, there is a huge threat of new companies entering the
market.
Phone Ventures
Threat of entry- Force 2- Threat of entry – we are entering USA, Canada,
Brazil, Surinam with a target to get the huge market share
Force 3- Substitutes- In second Company has a huge threat of substitute
company's phones.
Force 4 – Buyer power – It is more as we are a new company in a new
country.
In the phone industry, buyer power is more.
Force 5- Supplier power – There are a huge number of suppliers in market
and hence the supplier power will always be less as there is a substitute for
suppliers.
YEAR 4 Perfomance:
Competitive strategy
4th year price segment, change vision to price and left quality and customer
intimacy coz we arent able to achieve profits.
Here we will reduce our product quality and reduce cost as well because the
China, India, Malaysia has a huge market in price segment.
SWOT
STRENGTH -. Invested good amount of R&D resources on decreasing the
product cost, hence we have a product for best price letting us offer the best
price to customers and achieve net profit
Phone Ventures
WEAKNESS – we are targeting price segmet and giving the best price is
reducing the product costs and we aren't able to give very good quality
because of pricing issues.
OPPORTUNITIES - Diversity in market- We can tareget the
underdeveloped, developing and developed market.
THREATS- Competition- We have more competition as already many price
segment consideration companies are operating in these markets.
Targets
In year our price was reduced so our main target was Customer.
Market leader in price segments. 1.08
Achieve net profit € -39,680,613.31.
And in second year quality was also improved against cost so Miantaining
quality was also target.
Global market leader 1.00market shares.
The education level of staff – 99.46%%percent throughout .
Solvency was 69.73%.solvency decreasded as compared to third year.
LONG TERM GOALS
Highest market share
Sustainability
Quality
GROWTH
For company growth , we developed new product keeping in mind the cost
segment as customer go for less cost with less festures .
Phone Ventures
so reduced cost for getting maximum profit for company.
SUPPORTING ANALYSIS
Porters 5 forces
4th Year - Degree of rivalry – The market share has dropped because of the
new competitors entering the market.
Force 2- Threat of entry – the China, India, Malaysia has a huge market in
price segment and we are entering these markets. Not entering Singapore, it
is a quality market and we are not concentrating on that segment.
Force 3- Substitutes- In second Company has a huge threat of substitute
company's phones that are focusing price segment also.
Force 4 – Buyer power – It is more as we are a new company in a new
country.
In the phone industry, buyer power is more.
Force 5- Supplier power – There are a huge number of suppliers in market
and hence the supplier power will always be less as there is a substitute for
suppliers.
Phone Ventures
YEAR 5 Perfomance:
Competitive strategy
5th year changed vision , hired best employees at large scale in diverse
geographies for company best performance .
Captured price segment market in Nigeria and south Africa instead of UAE
where quality matters.
SWOT
STRENGTH -. Invested good amount of R&D resources on decreasing the
product cost, hence we have a product for best price letting us offer the best
price to customers and achieve net profit
WEAKNESS – The company profits were taken away by remuneration and
external staff hiring.Details are as follows for each country.company faced a
total remuneration cost of 322023965 .
Phone Ventures
Phone Ventures
Phone Ventures
Phone Ventures
Phone Ventures
OPPORTUNITIES - Diversity in market- We can tareget the
underdeveloped, developing and developed market.
THREATS- Competition- We have more competition as already many price
segment consideration companies are operating in these markets
.
Targets
In year our price was reduced so our main target was Customer.
Market leader in price segments. 1.08
Achieve net profit € 282,947,948.78 due to large scale remuneration.
And in second year quality was also improved against cost so Miantaining
quality was also target.
Global market leader 1.00market shares.
The education level of staff – 100.00% percent throughout increased
Solvency was 81.96%solvency increased as compared to fourth year.
LONG TERM GOALS
Highest market share
Sustainability
Quality
GROWTH
Company faced a major loss as for hired external staff at large scale this
year. Hired more educated staff as compared to previous year for better
production of products in low cost with latest ideas.
Phone Ventures
SUPPORTING ANALYSIS
Porters 5 forces
5th Year - Degree of rivalry – The competitors are entering into many
markets but we are standing our position by selling the phones for best
price’s
Force 2- Threat of entry – Not entering UAE – quality market.
South Africa, Nigeria – entering the market by offering the phones for best
prices in the market
Force 3- Substitutes- In second Company has a huge threat of substitute
company's phones that are focusing price segment also.
Force 4 – Buyer power – It is more as we are a new company in a new
country.
In the phone industry, buyer power is more.
Force 5- Supplier power – There are a huge number of suppliers in market
and hence the supplier power will always be less as there is a substitute for
suppliers.
Phone Ventures
YEAR 6 Perfomance:
Competitive strategy
6th we implemented a market strategy with least quality of feature to give
cheapest rates, and to captured huge market all over the underdeveloped
countries.
SWOT
STRENGTH -. Invested good amount of R&D resources on decreasing the
product cost, hence we have a product for best price letting us offer the best
price to customers and achieve net profit
WEAKNESS – we are targeting price segmet and giving the best price is
reducing the product costs and we aren't able to give very good quality
because of pricing issues.
OPPORTUNITIES - Diversity in market- We can tareget the
underdeveloped, developing and developed market.
THREATS- Competition- We have more competition as already many price
segment consideration companies are operating in these markets.
Targets
In year our price was reduced so our main target was Customer.
Market leader in price segments. 1.00
Achieve net profit € 368,089,418.85
Phone Ventures
And in second year quality was also improved against cost so Maintaining
quality was also target.
Global market leader 1.00 market shares.
The education level of staff – 100.0%percent throughout
Solvency was 92.39%solvency increased as compared to 5th year.
LONG TERM GOALS
Highest market share
Sustainability
Quality
GROWTH
In 6th year after remuneration, the company have seen a great break through and
have excellent performance as new hired qualified staff have boosted the output of
company with latest knowledge and generated more revenue and less time.
SUPPORTING ANALYSIS
Porters 5 forces
6th Year - Degree of rivalry – There is a huge competiton in many countries,
who are capturing the market. As a company concentrating on the price
segment we are reducing the phone prices to capture our market share
Force 2- Threat of entry – N/A
Force 3- Substitutes- In second Company has a huge threat of substitute
company's phones that are focusing price segment also.
Phone Ventures
Force 4 – Buyer power – It is more as we are a new company in a new
country.
In the phone industry, buyer power is more.
Force 5- Supplier power – There are a huge number of suppliers in market
and hence the supplier power will always be less as there is a substitute for
suppliers.
Future Goals and Performance Recap:
Over past 5 years, our company performance faced ups and downs, but our business is grown to
many countries that is a long run benefit of our business. We faced many challenges few of them
as follows:-
Delivery of product issue
Large competitive markets
New companies
Low income countries
Price based segmentation
Large scale market captured but change of plans required.
Large scale remuneration required.
As from past experience we have leanred that in under- developed countires quality of product
does not matter a lot they want simple low costs products with less features.So there will be a
change of plan required for developed and less developed countries.When we hired quality
education staff it was really impressive for company profits.
For future Goals we have decided to capture more markets and we have decided to capture and
make products for both developed countries (quality wise best) and for low income countries we
will make cost wise effective products to boost our sale according to market.
