Business Wargaming

Description

Your Mission

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Your Goal: the task consists of creating a wargaming model based on game theory and to put into practice a wargame.

Based on a given market – which is described below – five key market players and their respective individual strategic options are given. Also given are the individual preferences and the respective individual importance of each strategic option for each of the five competitors.

Feel free to chose yourself a scenario in which one of the five competitors is the first mover implementing one or more of its strategic options. The model – in which the competitors react to the strategic option(s) of the first mover via implementing on their part one or more of their individual strategic options – shall deliver a reasonable amount of stable and reachable states.

Because we value collaboration, you'll keep all intellectual property rights to your project following the challenge.

Deliverables

The model can be created in any software (e.g. Excel or Java).

But be carefull.

Your submission has to be in a Management coresponding format: PDF, Powerpoint or Video.

The presentation shall be presented in about 10 Slides maximum and shall include the following points:

a) Description of the scenario:
e.g.: First mover Competitor B implements its strategic options B1 and B3

b) Model result / Output:

How (via which strategic options) do the competitors react to the chosen scenario?

c) Short description of the model and its logic

The model shall be able to make the competitor’s reactions traceable. The time horizon – regarding the competitor’s reactions until stable and reachable states are found – is five years.

Key market player A

Competitor A is the market leader in both branches of the telecommunication market: in the mobile market as well as in the broadband / fixed line market. Competitor A offers a convergent product portfolio, covering the mobile market as well as the broadband / fixed line market and furthermore the TV market. Competitor A’s networks which cover almost the whole country have an excellent quality. Its tariffs are the most expensive compared to the other competitors. Competitor A is the only regulated competitor and has to wholesale its networks to its competitors.

Key market player B

Competitor B’s success is originally based on the TV cable branch. Since several years Competitor B has expanded its product portfolio and offers also internet access and mobile tariffs. The broadband / fixed line product portfolio covers about the half of the country’s households. Competitor B’s tariffs are less expensive than those offered by competitor A. Its overall network quality is good. The broadband tariffs of Competitor B include a higher maximum bandwidth than the tariffs of Comepetitor A.

Key market player C

Competitor C has the same characteristics and history as Competitor B. Competitor C’s broadband / fixed line product portfolio covers about the half of the country’s households (that half which Competitor B does not cover).

Key market player D

Competitor D is focused on the mobile market. Nevertheless, Competitor D also offers broadband / fixed line products but misses a TV product portfolio. The network quality could be better. Competitor D has a lot of customers in the mobile branch, but due to the weak network quality Competitor D’s tariff prices are quiet low.

Key market player E

Competitor E does not have a noteworthy own network but is an important reseller. Competitor E covers the whole variety of mobile and broadband / fixed line as well as of TV products based on the networks respectively on the TV products of its competitors, and offers cheap tariffs. The price/performance ratio is perceived as an excellent one by Competitor E’s customers.