Capstone

This week we finally started the business simulation with Capstone. In this simulation we have to think about managing the products the company produces, marketing, financing, etc. One of the options that we have in the program is to come up with new products and do all the activities necessary so it can a success. While we were deciding with my group if it was a good idea to come up with a new product, the things that came to my mind were, how big of a scope to we want to have? Are we going to come up with a low cost product or a differentiated product? I thought about the trading that we would have to do, like, if we create a differentiated product the cost would be high and only some customers would be able to afford, but at the same time, it would be something different, something that would create a more close relation with those who do get the product. Just like in the Ducatti and Apple case, both differentiated product, both high price product, but still both products have loyal customers because they bring something different to the table, something that customers cannot get from other companies. Companies have to take risk, and that is what we did with my group, we went after the product we thought would make a difference (in the differentiated segment) and we hope it works.