PDA Simulation Decision Essay

The score obtained for this test was 1,223,926,982.   The result was relatively encouraging given the fact that it was higher than the previous score.   There is an admission, however, that there is still room for improvement. Substantially the same strategies were used for this test.   These strategies are: 1) for handheld X5 the strategy used was to lower its price in order to attract more buyers and to maximize short-term profit in view of the fact that the market is mature and the product has been in market for three (3) years (Scott Allen, 2002); b) for Handheld X6 the strategy used was to allocate substantial amount for Research and Development accompanied by an increase in its price in view of the fact that this product is being purchased for its excellent performance, high quality, and attractive appearance (Ivana Taylor, 2008); c) for Handheld X7 the strategy used was to lower the price of the product in view of the fact that it is a new product which has been out only for 1 year and a significant portion of its market is still untapped but at the same time there should be an improved allocation in its Research and Development; and d) products which have fully saturated their market should be di scontinued. The change in strategy for this test is that changes were likewise made in the Research & Development allocation.   This is due to the fact that the consumers for particular product such as for X6 and X7 were looking for quality and performance in the said items.   For this reason, it would be necessary in order to meet their expectations to improve product quality and performance by allocating substantial amount for Research & Development.   It must however be stressed that the increase or decrease in Research and Development must be accompanied by change in price. The result was quite pleasing as the initial goals were achieved in terms of market saturation and improved sales.   At the start of the simulation the goal of the company was to be able to attract as many new customers as possible.   Following the principle of Law of Demand, the products which are being sold to low-end customers are sold at lower prices so as to improve demand for the product. The company was willing to spend as much for the Research and Development with a view that the amount expended for the development of X6 and X7 products will redound to more customers and more sales.   This was achieved for this test as the market for X5 was completely saturated.   This means that X5 was sold to all potential customers.   While the market was not completely saturated for X6 and X7 products, there are indications that there was substantial increase in the number of customers.   For instance, for X6 products market saturation improved from 74% to 90% while for X7 products market saturation improved from 10% to 15%.   This is shown in figure 1 below.