Our white paper Developing Disruptive Business Strategies with Simulation investigates business strategy analysis, the role of simulation, and how different strategies can be evaluated.
Based on an AnyLogic Conference presentation by PwC, it draws on real-world examples to illustrate the use of simulation modeling in business strategy decision making. The white paper forms part of our simulation modeling in business series.
Whether developing a disruptive business strategy or responding to one, analysis and testing are necessary for informed thinking and decision support. Especially as disruptive innovation is a threat that is often underestimated. In the paper, you will find case studies that cover both a market newcomer and an incumbent.
Uber’s potential market size is the focus of the first case study. While its taxi business is not strictly considered disruptive innovation, its limousine offering could be and difficulties valuing overall market potential have produced significantly different results. The case study looks at why this may be.
The airline industry and an incumbent’s response to market changes are the subject of the second case study. By evaluating market changes and opportunities, it is possible to formulate a response. A response, as discovered, that might not always be as expected.
Additionally, the experiences of PwC [presentation slides and video] provide insight into the use of simulation modeling for business strategy development. The paper highlights the important factors in strategy development, problems that can be encountered and the practical solutions employed to overcome them.
Read on and discover for yourself the benefits of simulation modeling for analyzing and developing disruptive business strategies.