Developing pricing analysis for a simulation

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//In the following paragraphs, there will be a discussion on the impact of changes in the pricing strategies and improvement process decision of Sun Power Company over the cumulative profitability of its product. There will also be an evaluation of market share due to changes in the pricing strategies by providing competition to other firms in the market. //

The simulation process is important for the determination of optimal pricing strategies in order to maximize the profitability. The simulation process allows consideration of a different combination of pricing and improvement process so as to re-evaluate the impact on the total market share, revenue, cumulative profit, consumer net price, modular price, and unit cost. There is no risk of new entrants that means the company needs to establish itself against the existing competitors in the market. Input data for first simulation run:

1) Decision 1: For Years 2008-2012
a) Pricing - Manual, b) Module Price - $0.1, c) Revenue to Process Improvement - 5%, d) Years to Advance - 5 years
The pricing decision of $0.15 is taken on the basis of the increase in the market share and cumulative profitability. The process improvement is set at 5% to decrease the cost so as to maximize the profitability of the company.
Simulation Output

(See the table)

On the basis of the first simulation run, it can be expected that the company will be in a beneficial position because of gaining market share of 1.38%, which indicates pricing strategy of the company is favorable. The cumulative profit is also increased by $263.85 million with the increase in revenue by $343.78 million in the first simulation run. However, there is no change in the consumer net price and modular price with the process ...