Tate Simulation Report

Strategy Simulation Exercise

Franyate D. Taylor

DMBA 630-9043

Submitted June 11, 2012

University of Maryland University College

Executive Summary

Quasar Computers currently has a monopoly on the current supply of optical notebook computers branded Neutron. Over the next ten years Quasar encounters competition in their field and must utilize four different market structures to continue to see profit and increase revenues. In 2003, Quasar had to determine the impact of price on demand, revenues, and profit while trying to maintain a monopoly on the market for the next three years. In those three years, Quasar focused on advertising and production upgrades to sustain this monopoly. In 2006, Orion Technologies stormed onto the scene with over 50% of the market shares as Quasar’s competition. At this time Quasar had to adjust their pricing strategy to optimize profits to maintain an oligopoly structure. Quasar realized that their revenues, market shares, and profits depended on both their price and Orion’s price. In 2010, Quasar’s market shares had begun to decrease due to competition. Now Quasar had to make a decision to either stick with their signature brand or venture into new brand development. This idea placed Quasar in a monopolistic competition with Orion to differentiate themselves with multiple brands of computers. Lastly in 2013, Quasar’s market shares and profit margins had stabilized thus the need for cost cutting measures to increase profit levels resulted in a perfect competition strategy to end out the ten year run of Quasar computers as the leading producer of optical notebook computers.

Simulation Game

Quasar Computers launched the first optical notebook computer where it’s processor and memory use high-speed optical conductors, resulting in five times the speed of a microchip-based computer. In the simulation we are asked at what price would you sell Neutron? Since in 2003, Quasar Computer’s was operating as a monopoly...