Posted: March 3rd, 2022

2/22/22, 1:12 PM Eight Strategies in Capsim

2/22/22, 1:12 PM Eight Strategies in Capsim

https://leocontent.umgc.edu/content/umuc/tgs/mba/mba670/2221/course-resource-list/types-of-strategy.html?ou=622272 1/5

Eight Strategies in Capsim

The following questions can help guide MediCorp’s choice of strategy:

Will MediCorp be local or global?

Will MediCorp be niche or broad?

Will MediCorp be a cost leader or a differentiator?

The two tables below differentiate local strategies from global strategies. For the purpose

of Projects 3 and 4, we will use the following terminology for the eight strategy choices:

NicolasMcComber / E+ / Getty Images

Local

Niche Broad

Course Resource

2/22/22, 1:12 PM Eight Strategies in Capsim

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Differentiator Focus on the high-tech segment

in only one country (local).

Competitive advantage is gained

by distinguishing products with

excellent design, high awareness,

easy accessibility, and new products—any of which may be

tailored to the individual local

market’s needs. R&D

competency is developed to keep

designs fresh and exciting.

Products will keep pace with the market, offering improved

accuracy and speed. Tailoring

products with specific region kits

is considered. Prices are above

average. Regional and product

branding and sales efforts are

given a larger budget to work with. Capacity is expanded as

higher demand is generated.

Vision statement: Premium,

tailored products for technology-

oriented customers in the local region; our brands define the

cutting edge.

Maintain a presence in both

segments of the market in

only one country (local).

Competitive advantage is

gained by distinguishing

products with excellent design, high awareness, and

easy accessibility. R&D

competency is developed to

keep designs fresh and

exciting. Products keep pace

with the market, offering improved accuracy and speed

– and sometimes tailored

region kits. Prices are above

average. Capacity is

expanded as higher demand

is generated.

Vision statement: Premium products for the local

country: our brands

withstand the test of time.

2/22/22, 1:12 PM Eight Strategies in Capsim

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Cost Leader Concentrate primarily on the

Low Tech segment in only one

country (local). Competitive

advantage is gained by keeping

R&D, production, and raw

materials costs to a minimum, enabling the company to

compete on the basis of price.

Prices are below average.

Automation levels are increased

to improve margins.

Vision statement: Reliable products for low technology

customers in the local region: our

brands offer value.

Maintain a presence in both

segments (broad) of the

market in only one country

(local). Note: For the purpose

of this project, the market for

the company’s products could be different from

where the plant is located.

Competitive advantage is

gained by keeping R&D,

production, shipping and raw

materials costs to a minimum, enabling the

company to compete on the

basis of price (cost leader).

Prices are below average.

The Plant Automation level is

increased to improve

margins. Any international selling must be done with an

eye on margins, first and

foremost.

Vision statement: Low priced

products for the local

country: our brands offer solid value.

KTSDESIGN / Science Photo Library / Getty Images

Global

2/22/22, 1:12 PM Eight Strategies in Capsim

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Niche Broad

Differentiator Focus on the high-tech segment

across two or three countries.

Competitive advantage is gained

by distinguishing products with excellent design, high awareness,

easy accessibility, and new

products—any of which may be

tailored to the individual local

market’s needs. R&D competency

is developed to keep designs

fresh and exciting. Products will keep pace with the market,

offering improved accuracy and

speed. Tailoring products with

specific region kits is considered.

Prices are above average.

Regional and product branding and sales efforts are given a

larger budget to work with.

Capacity is expanded as higher

demand is generated.

Vision statement: Premium,

tailored products for technology-

oriented customers across the globe; our brands define the

cutting edge.

Maintain a presence in both

segments of the market

across two or three

countries. Competitive advantage is gained by

distinguishing products with

an excellent design, high

awareness, and easy

accessibility. R&D

competency is developed to

keep designs fresh and exciting. Products keep pace

with the market, offering

improved accuracy and

speed—and sometimes

tailored region kits. Prices

are above average. Regional and product branding and

sales efforts are given a

larger budget to work with.

Capacity is expanded as

higher demand is generated.

Vision statement: Premium

products for the industry across the globe; our brands

withstand the test of time.

2/22/22, 1:12 PM Eight Strategies in Capsim

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Cost Leader Concentrate primarily on the low-

tech segment across two or three

countries. Competitive advantage

is gained by keeping R&D costs, production costs, and raw

materials costs to a minimum,

enabling the company to compete

on the basis of price. Prices are

below average. Regional and

product branding and sales

efforts are below average. Automation levels are increased

to improve margins.

Vision statement: Reliable

products for low technology

customers across the globe; our

brands offer value.

Maintain a presence in both

segments of the market

across two or three

countries (global). Competitive advantage is

gained by keeping R&D

costs, production costs, and

raw materials costs to a

minimum, enabling the

company to compete on the

basis of price. Prices are below average. Regional and

product branding and sales

efforts are below average.

The plant automation level is

increased to improve

margins.

Vision statement: Low priced

products for the industry

across the globe; our brands

offer solid value.

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