1 / 8

Optimal Production Forecast for New Video Game Console

Determine production quantity for new video game console based on market demand and supply constraints. Evaluate competitive landscape and execute strategy for successful launch.

ena
Télécharger la présentation

Optimal Production Forecast for New Video Game Console

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. How Many to Produce?

  2. Problem Statement • Your company is developing a new video game console and would like to know the number of units to produce. What is your recommendation?

  3. Understand the Problem • To determine the production number the potential demand for the product must be estimated. • Limits on supply capacity or minimum production requirements can also be an issue • Require knowledge of competitive landscape

  4. Plan the Strategy • Demand Data • Potential customer demographics • Current video game console owners • Potential new video game console owners • Supply Data • Production Limits (labor, equipment capacity, minimum commitment levels) • Raw material capacity • Competitive Landscape • Number of competitors • Competition sales • Product lifecycles

  5. Plan the Strategy Cont. (start small, can expand later) • Demand Assumptions • New customer target demographic • Male, 12-21 • U.S.market • Product penetration percentage of new console customers • Existing console owners • Supply Assumptions • Unconstrained supply • Competition Assumptions • Fixed percentage of current console market

  6. Execute the Strategy • New customer demographic information source • U.S. Census data • Current console owners/competitive landscape data source • Current market share – Hoover’s, Yahoo Finance, etc. • Estimate product differentiation and impact on market share (subjective)

  7. Execute the Strategy • Using found/estimated data determine • Potential market size from new console customers • Potential market size from current console owners

  8. Check and Interpret Solution • Sanity check • Sensitivity analysis on assumptions and inputs • Compare estimated market with first year sales or competitors console products.

More Related