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Trade Off

In: Business and Management

Submitted By taosixuan
Words 430
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Trade-Off

After practicing on the simulation for two weeks, I began to realize that trade-offs are ubiquitous everywhere in the business setting. A serious decision I have to make on in terms of how to establish my strategy, position my product, and determine how I should promote my product. It is known that decisions and trade-off go hand in hand. Previously I tend to believe that “more is always better”, and I assume that making trade-off is a sign of weakness. In the following paragraphs I will explore the experiences I learned so far from the simulation.

Trade-offs: Position
Generally in order to determine the needs of it customers, business need to conduct market research, including systematic gathering, recording, and analyzing data. In the simulation, we could access these information utilizing “The Customer Survey Score”. Like Bible in this fiercely competitive market, it helps us to recognize the importance of having a model of how the customers of a market segment make purchase decisions. What’s important, we could estimate next year January’s Customer Survey Score for product, both the position attractiveness and the price attractiveness. At first, I always wanted to launch the product at the ideal position; the ideal age for the segment; an MTBF specification at the top of the expected range. Meanwhile, I noticed that the segment drifts each month. It’s unlikely that I could catch the spot per month. What’s more, the prefect product requires a large amount of time and cost. As a new enterprise, we could not bear the opportunity cost. Customers want perfection, but it is impractical to have “prefect” productions. In many cases we have to settle for “great” products.

Trade-offs: Promotion Budgets and Awareness
After entering the marketplace, awareness is built over

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