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costlead.sct
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1995-05-30
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Cost Leadership Dilemma
For years, your business has been successful in pursuing the
strategy of cost leadership. But now, this strategy no longer
works very well, your competitors are offering products with far
superior quality and gaining ground in the market.
It seems that the only way to react is to invest in R&D, hoping
that will result in advancement of product quality. But doing so
will definitely put your cost leadership at risk. Furthermore,
R&D takes time and it is doubtful whether you can win the
everlasting race of technology.
Your goal is to sustain its profitability and make it into a
business with an annual profit of $100 million within 60 years.
If you manage to do so, you will be rewarded with 100 points in
your final score.
To converging competition and making the game more challenging,
you would not be able to produce all types of product in this
scenario. Those product types covered include : apparel,
beverage, chemical products, food, toy and watch.