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    Pricing strategy, running the simulation at least twice

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    In the Module 4 SLP, you will develop your own pricing strategy, running the simulation at least twice. Your objective is to earn the highest cumulative profit, and to expand market share to the greatest extent possible. In this final SLP, you will continue to compete with new entrants; in SLP4, however, the pricing policy of competitors will be more aggressive (i.e., competitors will be increasingly inclined to undercut your pricing).


    For this final SLP, go to "Settings" page, and change the following:

    1) Competitor Price Policy - Low

    2) Entry for New Competitors - On

    3) Be sure to SAVE your changes.

    For the Module 4 SLP, you are asked to complete the simulation, making pricing decisions at 2-year intervals. Leave the process improvement percentage at 5%. Note that you will again need to monitor the market share and financial performance of new entrants into the Solar Power industry. Also, you will now find competitors' pricing to be more highly aggressive.

    Run the complete 18-year simulation two times. For each simulation run, keep track of the pricing decisions you make at each of the four decision intervals. Also, keep your results (note key metrics like market share of new entrants vs. your company's market share, revenue, margins, profitability, etc). Give justification for your pricing decisions, and using key data, compare your results between Simulation Run #1 and Simulation Run #2.

    Keys to the Assignment

    The key aspects of this assignment that should be covered and taken into account in preparing your 5-6 page paper include:

    Include discussion and analysis of key metrics at the end of each decision point (e.g., among other data, be sure to include total market share, revenue, cumulative profit, consumer net price, modular price, unit cost, etc.). As an MBA, it is your job to identify cause and effect!
    Using Excel, provide a comparative analysis of key data to demonstrate the differences between the results of Simulation Run #1 vs. Simulation Run #2 at key decision points. It is your job to determine which data (and which comparisons) are most significant. Don't merely recite the data you've collected, however - instead, analyze the data! As an MBA, what does it tell you?
    Comment on the impact of the more highly aggressive pricing strategies used by competitors. What has been the effect of aggressive competitor pricing on your results (profitability, market share, cost to consumer, etc.)?
    What recommendations would you give to a newly-hired CFO who will be responsible for setting pricing for the company going forward? If you were responsible for orientation of the new CFO, what lessons learned, pricing/ marketing strategies, and other recommendations might you have? Be specific.
    **** NOTE: The 5-6 page requirement includes written analysis and all supporting tables, figures, and graphics. However, it does not include Cover or Reference page. Be sure to adhere to the TUI Writing Guide for formatting of all papers. If you are unsure how to complete a financial analysis, please review the following sample report:


    Also refer to the following source on business writing:

    O'Hara, C. (2014, November 20). How to improve your business writing. Harvard Business Review. Retrieved from https://hbr.org/2014/11/how-to-improve-your-business-writing?utm_campaign=Socialflow&utm_source=Socialflow&utm_medium=Tweet

    SLP Assignment Expectations
    Your paper will be evaluated based on the Rubric.

    Please note the following tips and suggestions:

    Include a cover page and reference page, in addition to the 5-6 pages of analysis described above.
    Include headings for all papers greater than two pages (basically all papers), but do not use headings as "space fillers."
    Cite and reference all sources that you use in your work, including those that you paraphrase. This means include citations and quotation marks for direct quotes of more than five words, and citations for that information which you have "borrowed" or paraphrased from other sources.

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    Solution Preview

    The response addresses the query is posted in 1272 words with APA References.

    //In the below segment, the Sun power company is being recommended with a pricing strategy in the two years interval through stimulation, in response to the aggressive pricing strategies being adopted by the competitors.//

    Under this assignment, the pricing decision for Sun Power co. is being developed through stimulation at the two years intervals in response to the aggressive pricing strategies being adopted by the competitors of the Solar Power Industry. All the key matrices that are directly associated with the undertaken pricing decision will be assessed in the report such as the overall annual revenue, market share, unit cost, the net income and new markets being covered.

    Discussion and analysis of key metrics

    In response to the aggressive pricing strategies being adopted by the competitor of the solar power industry, the pricing strategy being adopted under the stimulation run #1 is described as follows:
    Input: (a) Pricing- Manual, (b) Module Price- $ 0.14, (c) Revenue for improvement- 5%, (d) Years to Advance- 5 years.
    (See Screenshot in attached file)


    As per the output processed through the stimulation, it has been observed that at the prices being kept at $0.14 for two years, the direct unit cost is set at $0.10 per unit along with this; the market share is expected to be increased by nearly 2.13% with the revenue to process improvement being kept at 5%. Moreover, a cumulative profit of 2.23% is expected. Both the net income and the total revenue of the company demonstrate an increasing trend in response to the changes being introduced. The return on sales is expected to be 8% accompanied by the total emission of CO2 saved being 22,467,684 tons. The average net cost to the consumer is expected to be $0.15 /kWh.

    As per the stimulation run #2, the inputs given are as follows:
    Input: (a) Pricing- Manual, (b) Module Price- $ 0.12, (c) Revenue ...

    Solution Summary

    Competitor price policy and entry for new competitors are examined. The response addresses the query is posted in 1272 words with APA References.