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Growth Dynamics in New Markets
book

Growth Dynamics in New Markets

by Martin F. G. Schaffernicht, Stefan N. Groesser
July 2018
Intermediate to advanced content levelIntermediate to advanced
472 pages
11h 20m
English
Wiley
Content preview from Growth Dynamics in New Markets

ANALYSING THE MARKET SITUATION WITH THE SIMULATION

6.1 Introduction

In this chapter, you learn to exploit the simulation model to answer two important questions:

  1. What level of Accumulated profits for NewTel is a good result?
  2. What values of the decision variables allow you to achieve that level of Accumulated profits?

To answer these questions, you will extensively experiment with the simulation model. You will learn to systematically explore the simulation and to define the values of the decision variables. You will address each variable in isolation first, before combining them in more complex parameter configurations. You will also learn how to minimize the number of simulation experiments needed to find the optimal value for a decision variable.

6.2 Planning the search for the highest possible Accumulated profits

After analysing different aspects of NewTel’s situation in Plutonia in Chapters 2 to 4, Chapter 5 added financial resources; and simulating the model showed that it replicates the relevant features of the behaviour observed in the SellPhone simulator, with which you had your first experience in Chapter 1. In both simulations, you must use same default values of the decision variables to obtain approximately the same result. We concluded that the model is useful for helping us plan for financial success in your first year in Plutonia. With this model you now can test possible policies, before implementing them in reality – and being responsible for the results. ...

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Publisher Resources

ISBN: 9781119118237Purchase book