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CS-104 Rise of the Microbrew - Part 04 Pasteurization and Refrigeration v05

[Case Studies] CS-104 Rise of the Microbrew - Part 04 Pasteurization and Refrigeration (Vertical Differentiation)
Product 01 (Pasteurized) Price is high $1.20Product 01 Cost drops from $1.20 to $0.60Product 02 Price is low $0.80Product 02 Cost stays low at $0.50 All Customers agree that Product 01 isbetter than Product 02, but not allCustomers agree on _how_ much better.Hence the cheaper Product 02 still winsCustomers. Case Study (CS-104) - Rise of the Microbrew - Part 04:Pasteurization and RefrigerationThis Market Simulation workflow follows the Case Study presentation and whitepaper called "Rise of the Microbrew".While Geographic advantages were declining and the power of local monopolieswere dissipating, new technologies were being employed to make beer a betterproduct - namely Pasteurization and Refrigeration. These technologies gavemanufacturers Vertical Differentiation that allowed them to win over laggingbrewers.This Market Simulation assumes Pasteurization and Refrigeration addsimmediate value to the Beer, but that it takes time for the cost of the technology todrive down. The value of Pasteurization does notchange - only the cost of Pasteurizationchanges. Hence Quantity and Revenue areconstant, while Product 01 Profit increases.Customer Willingness To PayWTP for BeerProduct 01PasteurizationBeerProductsProductFeatures Changed PricePasteurizationTechnologyCostSimulateMarketLoop ChangingCost ofPasteurizationExcludeNo SaleProduct 01Product 02ProductQuantity TrendProductRevenue TrendProductProfit TrendChangingCost ofPasteurizationPasteurizationFeatureProduct 01Product 02Product 01vs Product 02 CustomerDistributions CustomerDistributions Product Generator Table Creator CustomerDistributions Simulate Market Loop End Row Splitter Row Splitter Line Chart(JFreeChart) Line Chart(JFreeChart) Line Chart(JFreeChart) Chunk Loop Start ConstantValue Column Column Rename Column Rename Joiner Product 01 (Pasteurized) Price is high $1.20Product 01 Cost drops from $1.20 to $0.60Product 02 Price is low $0.80Product 02 Cost stays low at $0.50 All Customers agree that Product 01 isbetter than Product 02, but not allCustomers agree on _how_ much better.Hence the cheaper Product 02 still winsCustomers. Case Study (CS-104) - Rise of the Microbrew - Part 04:Pasteurization and RefrigerationThis Market Simulation workflow follows the Case Study presentation and whitepaper called "Rise of the Microbrew".While Geographic advantages were declining and the power of local monopolieswere dissipating, new technologies were being employed to make beer a betterproduct - namely Pasteurization and Refrigeration. These technologies gavemanufacturers Vertical Differentiation that allowed them to win over laggingbrewers.This Market Simulation assumes Pasteurization and Refrigeration addsimmediate value to the Beer, but that it takes time for the cost of the technology todrive down. The value of Pasteurization does notchange - only the cost of Pasteurizationchanges. Hence Quantity and Revenue areconstant, while Product 01 Profit increases.Customer Willingness To PayWTP for BeerProduct 01PasteurizationBeerProductsProductFeatures Changed PricePasteurizationTechnologyCostSimulateMarketLoop ChangingCost ofPasteurizationExcludeNo SaleProduct 01Product 02ProductQuantity TrendProductRevenue TrendProductProfit TrendChangingCost ofPasteurizationPasteurizationFeatureProduct 01Product 02Product 01vs Product 02CustomerDistributions CustomerDistributions Product Generator Table Creator CustomerDistributions Simulate Market Loop End Row Splitter Row Splitter Line Chart(JFreeChart) Line Chart(JFreeChart) Line Chart(JFreeChart) Chunk Loop Start ConstantValue Column Column Rename Column Rename Joiner

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Created by: Berlin
Created at: 2018-05-28
On NodePit since: 2021-02-05
Last update: 2024-04-27
Created with KNIME version: v4.3.0

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