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# Handheld Corporation: Simulation Exercise

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Review your strategy from last module and enter your decisions into the simulation. Run it through all the way through, (ALL FOUR YEARS - NOT JUST ONE!) and do not deviate from your strategy:

Give your final score on the simulation. How does that compare to market potential?

Evaluate the effectiveness of your strategy.

Outline your proposed changes in strategy for the next run and justify them.

Remember that the key here is ANALYSIS. What assumptions did you make when you planned your strategy? Did these assumptions prove to be right, or was there something else you didn't think about that influenced your results? How will taking those factors into account affect your strategy in this upcoming run?

Again, you need to crunch some numbers to determine how successful you were, where the greatest sources of profit are, and what changes make sense. Make sure you proposed changes in strategy are firmly based in this analysis and sound business principles.

#### Solution Preview

The response addresses the queries posted in 1359 words with references.

//The given paper is based on a simulation problem of a company named Handheld Corporation. The given paper is describing the strategy of the company for profit maximization of the company for three of its new products. The following part is including the pricing strategy for the three new products of the company. //

The strategy

The Simulation exercise is used to maximize the total profits over a period of five years, for all the three models (Khandelwal, Gupta & Gupta, 2001). For PDA Sim case, I would recommend the pricing strategy of the three products as follows: increasing the price of product X6, reducing the price of the product X7 and keeping the price of the product X5 constant for a period of two years.

//The next section of the discussion provided by me is including the detailed knowledge of the new products of the company and the pricing strategy of the company for these new products. The Products proposed are X5, X6 and X7. //

X5

X5 is available in the market from last three years. It has a case of plastic and it has the lowest price among all the three products. Therefore, the customers of this product are not concerned with its performance. Hence, there is no requirement of price increment for this product, but emphasis should be given to ensure that the product is obtaining maximum profit and providing full benefits. For the fulfillment of these requirements, X5 should be used completely, so as to earn the utmost profit for a minimum period of 2 years. The current price of this product is about \$250.

X6

X6 has been surviving in the market for last two years. X6, rather than X5, is supposed to have a flat metal case. The customers are not concerned regarding the product price; but they give due concern to the product performance. The product's present price is \$400. The price of the product X6 can be positively raised further because this product owes a value among its current customers. X6 has gained this value due to its outstanding performance and ...

#### Solution Summary

This response addresses the queries posed in 1167 Words, APA References.

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