Startup Sim

learning solutions

• Teams must first choose their position within a three-tiered value chain.
One example is the rapidly expanding market for computer-controlled close-circuit television systems (CCTV).

The upstream sector involves companies that assemble chipsets for video processing. Those are supplied to companies commercializing PC-controlled CCTV solutions.

These products are marketed to businesses and households through various channels, including wholesalers and agents.

• Teams select in which market(s) to establish their business, based on the specific commercial characteristics we provide.

In this example, participants could be offered three markets: EU, USA, and India. A team may choose the begin operation in, say, the EU, and later expand to other areas.

Participants are provided with detailed data on market demand, pricing, costs, and investment requirements. These insights help identify opportunities for recouping initial investments, provided that a balanced approach is maintained across the ecosystem.

• The decisions that teams make regarding their business setup and market entry progressively shape the competitive landscape, impacting all teams in the value chain. Therefore, teams should consider carefully both the implication of their decisions on competition, and whether collaborative opportunities may give better results.

Startup Sim’s software supports multiple teams, and the system can be customized to suit the client’s specific needs.

Teams may adapt or change their business model as the market and business environment evolves and opportunities and threat develop. Quasi-monopolistic situations rarely last long! Opportunities come and go, but competitive pressures are ever present.

Therefore, teams must always monitor the evolving ecosystem, looking out for opportunities and adjusting their strategy accordingly. Vertical integration, take-overs and temporary or long-term partnerships are frequent occurrences. However, competition policy rules (e.g. no pricing collusion) must always apply.

• While we offer a standard ecosystem, Startup Sim can be adapted or fully customized for clients.

The top of the value chain generally supplies electronics components to firm producing equipment that serve the businesses and/or consumers. In all cases, the dynamics of innovation exercise a large influence on the value chain dynamics.