Aftermarket Strategy Simulation

Simulate the revenue and profit potential for aftermarket products or services.

Start by reading the paper about aftermarket sales, then experiment with case studies on razors and blades, aircraft engines, automobiles, mobile phones, and inkjet printers. Finally, customize the simulation for your own aftermarket product or service.

Aftermarket strategies are often used as part of a pricing strategy. A very simple aftermarket strategy is to deeply discount the primary product in order to entice new customers into the installed base. The idea is, even if the primary product is unprofitable, a profitable business can evolve in the long-term through aftermarket sales. Businesses with aftermarkets often compete very aggressively on price for new customers.

Read the article Developing an Aftermarket Strategy, which explains how the simulation works.

Topics covered
Aftermarket,
Installed Base,
Inkjet Printers,
Razor and Blades,
Aircraft Engines,
Mobile Phone Service

Audiences
Corporate training,
MBA programs,
Undergraduate business
(online or classroom)

Duration
1 to 2 hours including introduction and debrief