GoVenture CEO Business Simulator Basic Strategy Tutorial

this video will quickly show you how to devise your basic business strategy in go venture CEO make sure to watch the more detailed video tutorial and read the user guide before you begin click Play to launch the simulation

an existing simulation or enter a new simulation number

may be requested to submit a short quiz this will appear in a pop-up window if the quiz is required by your instructor once you enter your business start by reviewing the backstory that outlines your role and objectives size of the market may be revealed here but for full details go to the customers and competitors screen on the customers and competitors screen you can purchase a consumer profiles report

that there may be more than one report available one for each territory your simulation may be set up for one or more territories let's take a look at the report for one of the territories the report shows the consumer and market demand market demand is the total amount of money that all consumers in the territory spend on the type of product you and your competitors are selling you compete with other businesses for a share of this money for example if market demand is 1,000 dollars and there are two companies competing in the market then an average each company may be able to earn one half of the $1000 which is five hundred dollars five hundred dollars is the average market demand per company but a company may learn much more or much less than the average depending on the business decisions made by each company notice that the report shows you the average market demand per company the total market demand will be revealed later once all competing businesses join the simulation it is also important to note that market demand amount is what consumers will pay to buy products companies selling products may earn less revenue than this amount if there is a resale or discount sales commission or other compensation earned by the seller of the product for example if the average market demand per company is five hundred dollars and there is a reseller discount of 20% which equals one hundred dollars then the average revenue per company is five hundred dollars minus one hundred dollars which equals four hundred dollars if there is a reseller discount or other seller compensation you will be able to see this on the manufacturing screen when setting your product price

that you know how much money is spent by consumers to buy products like yours next you should review the consumer population numbers these numbers show you how the market demand breaks down by consumer profile what's a consumer profile when consumers have several competing products to choose from each consumer will buy the product that best matches their desired price brand and features consumers that buy similar products are considered to have the same consumer profile for example one consumer may want to buy a car that has the most luxurious features while another may want to buy a car that is lowest priced these two consumers have different profiles and therefore are segmented into different groups you can see the various consumer groups here what's important to identify is the population percentage of each group some groups may spend a lot more money than other groups for example if the consumers who buy luxury cars are only a small percentage of the market the market demand of those consumers may not be large enough to support several competing products or if the population percentage is high this could mean that there is an opportunity for more competing products

now that you know how much money is spent by consumers next you have to figure out the type of products consumers want to buy our consumers interested in a low price are they interested in a company with a strong brand do they desire specific product features these factors contribute to which products consumers will buy the factors that influence consumer purchasing decisions can be discovered by reviewing the consumer psychographics psychographics tell us how the consumer thinks and what they find important when making a purchase decision the consumer profiles report shows us this information here for example we can see here that consumer group number 10 is completely price conscious this means they are going to purchase the lowest priced product in the market regardless of brand or features on the other hand consumer group number 9 watts luxury and is willing to pay extra for it for your strategy you have to decide which consumers you will try to attract keep in mind that each consumer group may represent a different percentage of the market demand once you know the market demand you can use that number to help with pricing and forecasting how many units of product you might be able to sell for example if the average market demand per company is 1000 dollars and you set your product retail selling price to $200 you can estimate that you might sell five units keep in mind that there is no preset price that consumers are expecting to pay for your product price expectation is based on supply and demand including how attractive your products are compared to those offered by competing businesses

once your strategy is defined you must make business decisions that are consistent with the strategy that you have identified review your budget and use the strategy journal and what-if calculator to help with your planning then make investment decisions for manufacturing research and development sales and marketing and Human Resources as the simulation advances each period you will be able to discover new information about the market and your competitors use that information to adjust your strategy so that you can best reach your business goals good luck and go venture