engleski

System dynamics modelling of price war in automotive industry

The goal of the paper is to present a case study of modelling price war in automotive industry with system dynamics methodology. Case study emerged from the need of the automotive firm that started to loose its market share in price war initiated by a major competitor. Preliminary model constructed was used for testing management’ s hypothesis that more marketing investments could help the company to regain its market position. However, experiments with the model showed that even large increase of marketing investments would not help the company to increase their selling. System dynamics model thus help the management to realize that their presumption about marketing investments was wrong. Further modelling will be done in future with more complex approach that would include both competitors and customers’ reactions to price changes, marketing campaigns, post-sales services and product differentiations.

Dynamics; Modelling; Automotive Industry; Price War; Marketing

nije evidentirano