Boom & Bust Enterprises Product Launch Simulation

Subscribe to this Forio Simulation and use it in your workshop or classroom.

Players take the role of top management of B & B Enterprises, a fictitious firm based on a variety of real cases. The game begins as a new product is launched. Players are responsible for marketing, pricing, and capacity expansion decisions to maximize their cumulative profit over the next 40 quarters. The potential market is large, but as in real life key attributes of the market, including its size and price elasticity, consumer responsiveness to word of mouth, repurchase behavior, and other customer attributes, are unknown. The player also faces a simulated competitor whose pricing, marketing, and capacity expansion strategies are likewise unknown. The game illustrates fundamental principles of corporate strategy including the learning curve, time delays in capacity expansion, competitive dynamics, and market saturation.

Simulation developed by Professor John Sterman, MIT Sloan School of Management

Download article: Explaining Capacity Overshoot and Price War

Topics covered
Growth,
Capacity,
Marketing,
Pricing,
Strategy,
New Product Introduction

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

Duration
1 to 3 hours including introduction and debrief