DIARIESKetaki|Megha|Neha|Sugan|Team|Yash

VISION & MISSION

VisionTo be the global leader of the Innovative Digital

Camera Industry

MissionProvide Quality Entry Level & Multi Featured

Cameras by motivating our employees to deliver at their highest potential while also

having a strong sense of CSR.

Trial – The game begins…

OBSERVING COMPETITION OBSERVING COMPETITION

The game begins before first round

How competitors do?

What decisions went well?

What decision went wrong?

HERD MENTALITY

D-Company was the best

Everybody will learn:

What D did?

How D did?

Why D did it?

And follow suit

The Rise of

Hummingbird

BUSINESS STRATEGY

BUSINESS STRATEGY

We are in business to make

MONEY

PRODUCT STRATEGY

PRODUCT STRATEGY

Entry Multi

• Global best cost • Standard P/Q• Reasonable

price• 5 models• High R&D

PRODUCT STRATEGY

Entry Multi

• Global best cost • Standard P/Q• Reasonable

price• 5 models• High R&D

MARKETING STRATEGY

PRODUCTION STRATEGY

FINANCE STRATEGY

WHY DID WE DO

Entry-level

High model, Low quality, Higher price

To get higher profit margin

But lower market share

High price = above industry average

We refused to take part in price wars

Multi-Featured

High model, lower quality, lower price

Lower quality = higher profit margin

Lower price = bigger market share

First-mover advantage

Capitalize on the market share

Hummingbirdflying to the

TOP

Humming bird flying to the top

Winning strategy

Industry leader

Global top 100 best performing team

All good things

must come to an

end

The Fall of Hummingbird

What went wrong?

Myopic Vision – only Focussed on MF.

Poor planning - lost market share in EL.

Did not develop strategy to keep low Cost/unit for EL. - Forced us to keep a higher price

Our image rating was below our main competitors

Competition is heating up

Price War had begun in EL.

Big Drop in Quality, Huge Drop in Price

Competitors dropped both quality and price

Changing Market Dynamics

Changing market condition

Failed to adopt to the dynamic Market trend( Apple vs Samsung)

Unable to maintain 20% Market share in MF

Market share in entry dropped

Clash of opinions in boardroom

  

The biggest enemy lies within

Lower profit marginHigher volumeHigher market share

High profit marginLower volumeLower market share

HAMMERED!!!!

Poor Decision Making

Sales & profit drop by 47%

Image rating went crashing (33%)

Stock price go down (36%)

Team dynamics gone sour

Competitors laugh their ways to the banks

Lost Opportunities

Demand(000's of units) 97 92 46 84 64 66 54 39

Market Share 17.9% 17.0% 8.5% 15.5% 11.8% 12.2% 10.0% 7.2%

Final Result

#3 in Competition.

Overall Score of 98.

Overall Game to date Score of 99

Decision making process Chose Collaborative Effort to craft strategy

Assigned Functional Area Strategists

Jointly chose among strategic alternatives by evaluating Pro/Cons

Every Team Members buy-in was required

What we could have done better?

Failed to create Conflict Management System

For Year 10 - Conflict in Board Room

Resorted to Democracy.

Conflicting & Inconsistent strategic elements impaired firms performance

Competitors analysis

Entry-level

F & D- our biggest competitor

How they did it?

Low P/Q rating = Low production cost = Low price

Multi-Featured

F & B - our biggest competitors

Good P/Q rating at lower price

How did we beat them?

Best- cost leadership

Always stick to the plan

• Make Decision by Strategy

• Do not rely on Gut Feeling or Projection Numbers

• Have a Proactive and reactive Strategy

Leader today, irrelevant tomorrow• Never Relax in the game of Business

• Use Competitive Intelligence Reports to keep an eye on Competitors Strength & Weakness

• We were market leaders for first 4 rounds. We should have evaluated how our competitors were catching up to us.

Different region, different strategy

• Focus Decision Making on Geographical Regions

• We had same prices and same marketing prices for each region. Forex was the only reason for price change

To be the best, you need the best

• Invest in compensations, benefits and PAT training

• Improve productivity due to high incentive for reduced warranty claims ($2.5/ unit).

• Reduce absenteeism by giving highest quarterly bonus for attendance ($250/PAT member)

• To attract and retain the best employees.

Don’t depend on single source of income-Warren Buffet

• We were too dependent on multi-level segment

• Things may not go according to plan

• We couldn’t rely on entry-level

Don’t let finance control your business, use business to control your finance

• Finance was controlling our strategy

• We adjusted our decisions according to the financial projection

• We abandon long-term goals for short-term gains

What you can learn from us?

COMPANY/STATISTICS

NET SALES REVENUE

NET INCOME

DIVIDEND DECLARED RETAINED EARNINGS

A 1,328,439 64,353 8,647 55,706

B 1,695,374 144,153 17,488 126,665

C 1,283,218 104,241 36,755 67,486

D 1,446,558 123,083 56,600 66,483

E 990,544 57,744 23,886 33,858

F 2,033,440 163,175 76,276 86,899

G 1,414,503 73,185 23,320 49,865

H 1,423,306 159,509 11,343 148,166

Taking the learning beyond simulation

• Do not get comfortable with your current position, always strive for more.

• Respect opinions from every member of the team.

• Never take hasty decisions based on intuition.

Project Hummingbird

was a FAILURE!

We will rise again!

Thank you