Chapter 6 · Advanced Techniques of Market Analysis · Slide 227/274

Market Simulations

Suppose: 80 % of customers prefer round things, 20 % prefer square ones. What kind of things should we bring to market?

6.2 · Market SimulationsWhy? Competition!

Market Simulations

Suppose: 80 % of customers prefer round things, 20 % prefer square ones. What kind of things should we bring to market?

80% round things

20 %

Without additional information

The choice seems obvious — go where most customers are:

“round things”the “fat” part of the market

What if …

there are already 10 competitors that ALL offer round things?

10 providers compete for the same 80% — the 20% “square” are completely unoccupied.

Only in the context of competition does it become clear: the smaller, unoccupied market can be more profitable — and that is exactly what a market simulation makes visible.

QUESTIONSTAR · Dr. Paul Marx227 / 274

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