Simulation Report

Simulation Report

Table of Contents

 Introduction

Clipboard Tablet Company produces and sells tablets: X5, X6, and X7 (Elson, 2012). It launched X5 tablet seven years ago, and its customers do not worry about the performance. X6 is six years old. The customers are only sensitive to the performance. X7 is five years old, and customers are sensitive to both performance and price changes.


Yearly Decisions: Pricing and R&D Allocations

Time Warp 2

2012

2013

2014

2015

X5

Price 265 Price 265 Price 250 Price 250
R&D % 34% R&D % 35% R&D % 34% R&D % 33%
Discontinue? No Discontinue? No Discontinue? No Discontinue? No

X6

Price 400 Price 420 Price 400 Price 400
R&D % 33% R&D % 33% R&D % 33% R&D % 34%
Discontinue? No Discontinue? No Discontinue? No Discontinue? No

X7

Price 195 Price 170 Price 170 Price 170
R&D % 33% R&D % 32% R&D % 33% R&D % 33%
Discontinue? No Discontinue? No Discontinue? No Discontinue? No

 


 

 

Time Warp 3

2012

2013

2014

2015

X5

Price Price Price Price
R&D % R&D % R&D % R&D %
Discontinue? Yes Discontinue? Discontinue? Discontinue?

X6

Price 400 Price 400 Price 420 Price 400
R&D % 60% R&D % 60% R&D % 60% R&D % 50%
Discontinue? No Discontinue? No Discontinue? No Discontinue? No

X7

Price 170 Price 170 Price 170 Price 170
R&D % 50% R&D % 40% R&D % 40% R&D % 50%
Discontinue? No Discontinue? No Discontinue? No Discontinue? No

 Simulated Results


Summary 2012

Time Warp 3: Cumulative profit score for 2012 is 202,354,566. According to the advisor, customers pay about the same price for the products as for similar, competing products. The sales for X6 are in the growth phase of the product life cycle; the majority of the customers for X6 have not yet purchased the product. The performance of X5 compares favorably with other tablets in the same category. In relation to X6, the sales are 1,563,272, revenue, 625,308,811, variable costs, 429,899,808, fixed costs, 37,500,000, profit, 23%. In the case of X7, the sales were 211952, revenue, 36,031,759, variable cost, 11,657,334, fixed costs, 37,500,000, and profit, –63%. The figures representing monetary values are all in dollars.





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