Target group: International sales conference (100 persons) in Budapest
Goal: Game about finding the right balance between volume sales and product mix in the tire industry
Description: What strategy works best for a company? A wide selection with small purchase volumes per product of perhaps a small selection with high sales volumes? A tough question with which a lot of companies nowadays struggle with. In this simulation we stayed as close to Bridgestone’s reality as possible. The focus of the game was on the sales of their own tires. But how? We challenged the participants to make the smart decisions and constantly weigh the pros and cons.
Businessgames divided the participants over supplier teams and client teams. Each client team had one unique question (represented by a forecast). To start off, it was up to the suppliers to define a strategy. Are we going to respond and supply to all the requests? Naturally all these sales requests can be highly appealing… Or should the focus be on creating higher volumes of some of the products? When choosing the last option, you have to say ‘No’ to the client every once in a while. But the benefit is that the purchase price decreases when talking about larger orders. This also means that you, as a supplier, need to get more clients to commit to the same product in order to make profit. In short, it caused an interesting dynamic that met the objective the client was searching for.
The game was won by a supplier team that kept a close watch on its competition and debated with each other about ‘the next smart move’ and only then they made a combined well-considered decision. And that well-informed choice was just what Bridgestone was looking for! On the one hand listening to the customer’s demand, but also checking margins, competition, quality differences and purchase volumes.
Category: Management Games