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CS-142 Crack the Competitive Strategy Game CSG - Part 02 Monte Carlo v05

[Case Studies] CS-142 Crack the Competitive Strategy Game (CSG) - Part 02 Monte Carlo
Case Study (CS-142) - Crack the Competitive Strategy Game (CSG) - Part 02Monte Carlo Price OptimizationThe Competitive Strategy Game (CSG) was developed by Professor SeverinBorenstein at the Haas School of Business, UC Berkeley. The CSG simulateseight Competitors competing in four different Markets.Cracking the CSG (Part 02) involves running a Monte Carlo simulation to calculatethe Profit-Maximizing-Price of the Focus Product given the publicly known CapacityConstraints of all the Competitors. Define the Competition:(a) Product Name(b) Marginal Cost(c) Capacity Limitation(d) Starting Price = A(e) Ending Price = B(f) Focus Product = true / false Get the Willingness To Pay(WTP) Matrix from Part 01 viaCopy-and-Paste. Or get the Willingness To Pay(WTP) Matrix from Part 01 viaExcel. You can drag-and-drop anExcel spreadsheet into theMarket Simulation workflow. Range of recommended Pricesto set for the Focus Product giventhe randomly selectedCompetitor Prices from MonteCarlo. It is typical for the Profit-Maximizing-Price of the FocusProduct to sell a Quantity equalto the Capacity Constraint (withno variation). But if allCompetitors end up with lowPrices, the actual Quantity soldmay be less than Capacity. The expected Revenue andProfitability can be calculatedusing the results from the MonteCarlo simulation. The Competitors Prices arerandomly selected for the MonteCarlo simulation between the 'A'Price and the 'B' Price. If used, connect this output to the'Column Filter' labeled "WTPMatrix for 8 x Products from Part01" (on the right). The Loop will iterate row-by-rowthrough all of the randomlyselected Competitor Prices forthe Monte Carlo simulation andcollect the results. Calculate the Profit MaximizingPrice for the Focus Product giventhe Monte Carlo CompetitorPrices, then send the Price andProfit results to a histogram. Copy-and-PasteWTP Matrixfor 8 x Productsfrom Part 01Marginal CostProduction CapacityCopy from Public Data(at beginning of each period)Generate CompetitorTest Pricesfor Monte Carlo(100 Test Simulations)Focus Productvs Competitor ProductsSelect Test Pricesfor Monte CarloRotate CompetitorPrice ColumnRename CompetitorPrice ColumnFocus ProductStarting PriceRe-define Marketwith CompetitorMonte Carlo PricesFind Focus ProductProfit-Maximizing-Pricegiven the CompetitionWTP Matrixfor 8 x Productsfrom Part 01CleanResultsSelect Nameof Focus ProductRenameFocus ProductSelect Next Test Pricesfor Monte CarloRemove Productswith Zero CapacityFilter Results forFocus ProductHistogramProfit Maximizing PriceHistogramExpected QuantityHistogramExpected RevenueHistogramExpected ProfitHistogramMonte CarloCompetitor PricesSummary of allCompetitor ResultsAlternatively ReadPart 01 WTP Matrixfrom ExcelFocus_ProductFlow VariableAppend CompetitorPrice Column Table Creator Table Creator CustomerDistributions Row Splitter Chunk Loop Start Transpose Column Rename(Regex) ConstantValue Column Concatenate Price Maximize Column Filter Column Filter Column Filter Column Rename Loop End Row Filter Row Filter Histogram Chart(JFreeChart) Histogram Chart(JFreeChart) Histogram Chart(JFreeChart) Histogram Chart(JFreeChart) Histogram Chart(JFreeChart) GroupBy Excel Reader Table Rowto Variable Column Appender Case Study (CS-142) - Crack the Competitive Strategy Game (CSG) - Part 02Monte Carlo Price OptimizationThe Competitive Strategy Game (CSG) was developed by Professor SeverinBorenstein at the Haas School of Business, UC Berkeley. The CSG simulateseight Competitors competing in four different Markets.Cracking the CSG (Part 02) involves running a Monte Carlo simulation to calculatethe Profit-Maximizing-Price of the Focus Product given the publicly known CapacityConstraints of all the Competitors. Define the Competition:(a) Product Name(b) Marginal Cost(c) Capacity Limitation(d) Starting Price = A(e) Ending Price = B(f) Focus Product = true / false Get the Willingness To Pay(WTP) Matrix from Part 01 viaCopy-and-Paste. Or get the Willingness To Pay(WTP) Matrix from Part 01 viaExcel. You can drag-and-drop anExcel spreadsheet into theMarket Simulation workflow. Range of recommended Pricesto set for the Focus Product giventhe randomly selectedCompetitor Prices from MonteCarlo. It is typical for the Profit-Maximizing-Price of the FocusProduct to sell a Quantity equalto the Capacity Constraint (withno variation). But if allCompetitors end up with lowPrices, the actual Quantity soldmay be less than Capacity. The expected Revenue andProfitability can be calculatedusing the results from the MonteCarlo simulation. The Competitors Prices arerandomly selected for the MonteCarlo simulation between the 'A'Price and the 'B' Price. If used, connect this output to the'Column Filter' labeled "WTPMatrix for 8 x Products from Part01" (on the right). The Loop will iterate row-by-rowthrough all of the randomlyselected Competitor Prices forthe Monte Carlo simulation andcollect the results. Calculate the Profit MaximizingPrice for the Focus Product giventhe Monte Carlo CompetitorPrices, then send the Price andProfit results to a histogram. Copy-and-PasteWTP Matrixfor 8 x Productsfrom Part 01Marginal CostProduction CapacityCopy from Public Data(at beginning of each period)Generate CompetitorTest Pricesfor Monte Carlo(100 Test Simulations)Focus Productvs Competitor ProductsSelect Test Pricesfor Monte CarloRotate CompetitorPrice ColumnRename CompetitorPrice ColumnFocus ProductStarting PriceRe-define Marketwith CompetitorMonte Carlo PricesFind Focus ProductProfit-Maximizing-Pricegiven the CompetitionWTP Matrixfor 8 x Productsfrom Part 01CleanResultsSelect Nameof Focus ProductRenameFocus ProductSelect Next Test Pricesfor Monte CarloRemove Productswith Zero CapacityFilter Results forFocus ProductHistogramProfit Maximizing PriceHistogramExpected QuantityHistogramExpected RevenueHistogramExpected ProfitHistogramMonte CarloCompetitor PricesSummary of allCompetitor ResultsAlternatively ReadPart 01 WTP Matrixfrom ExcelFocus_ProductFlow VariableAppend CompetitorPrice ColumnTable Creator Table Creator CustomerDistributions Row Splitter Chunk Loop Start Transpose Column Rename(Regex) ConstantValue Column Concatenate Price Maximize Column Filter Column Filter Column Filter Column Rename Loop End Row Filter Row Filter Histogram Chart(JFreeChart) Histogram Chart(JFreeChart) Histogram Chart(JFreeChart) Histogram Chart(JFreeChart) Histogram Chart(JFreeChart) GroupBy Excel Reader Table Rowto Variable Column Appender

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Created by: Berlin
Created at: 2018-10-23
On NodePit since: 2021-02-05
Last update: 2024-11-21
Created with KNIME version: v4.3.0

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