Business simulation - Peach
Peach was set up by five shareholders that invested $1,000,000 each. During the first year, company's main mission was to develop products to meet our core target's needs and expectations. Our goal was to know customer's satisfaction because that is for us the best way to develop a profitable company in the long-term.
During the first quarter, we invested in a marketing survey in order to obtain a lot of information on the global environment of our customers. After acquiring the necessary knowledge to answer our customers' needs and expectations, we have decided to focus on two segments: Costcutters and Travelers. Two interesting segments in computer's sector because people are always looking to make economies but want to be at the forefront of technology; and those who are traveling (and working) need computers to work, to watch a movie etc..
Then, we had to take a second decision about the production plant and sales offices.
We decided to produce in Brazil, according to figures found in the market survey. It was the cheapest manufactory's place knowing that we wanted to open our first sales office in United States. Concerning the two outlets, we choose to base them in Chicago and Los Angeles because the customer's demand of computers is high and their willing price to pay would permit us to make profit more rapidly. The history will teach us that is not so easy to predict the market.