Winning Strategy for Cesim Global Challenge – Round 2
Hello, and welcome back to the Cesim Global Challenge simulation!
In this video, I’ll walk you through the Top 10 Winning Tips and Strategies
you need for Round 2 of the 2023–2024 season. These tips are based on
successful teams’ real decisions, performance benchmarks, and the data analysis
required to gain a competitive edge across all three markets: USA, Asia,
and Europe.
Let’s begin by diving into the strategic data and turning it
into actionable decisions.
✅ Tip 1: Review the Industry
Overview & Set Your Sales Forecast Correctly
The first thing you need to do before making any decisions
is check the Industry Overview. This gives you a snapshot of the total
market demand and performance from the previous round.
- In our
sample data, the USA Market sold about 21,900 units, while Europe
sold 14,700 units.
- This
data is critical for forecasting your unit sales for the next round.
👉 How to use this?
- Use
these figures as a baseline.
- Adjust
based on your product pricing, quality (features), and promotion levels
compared to competitors.
Also, take note of the average selling price and
especially the average production cost:
- For
example, Tech 1 products may have a cost of $1,800 per unit while Tech 2
might cost $2,700.
- Use
this to determine your minimum pricing floor—you can’t price below
cost for long and stay profitable.
Next, review how many factories are operating in each
region. For instance:
- In
the USA, there may be 108 factories total, but only 66 are active.
- This
presents an opportunity: you can adjust production and capacity planning
to seize market share where others are underutilized.
✅ Tip 2: Analyze Financial
Statements of Top Teams
The second winning tip is to study the financial
reports of your competitors, especially the top-performing teams.
What do you look for?
- Total
Revenue: Who’s generating the most sales?
- Net
Profit: Which teams are actually keeping profits?
- R&D
and Promotion Spending: Are they investing for long-term gains?
📊 Example:
- A top
team might have $1.5 million in revenue and $220,000 in net profit.
- Their
promotion spend might be $70,000 and R&D investment
around $50,000.
This tells us that a high-performing strategy often
involves:
- Balanced
spending: not just cutting costs, but smart investment in R&D
and marketing.
- Poor
performers often skip R&D, get short-term profit, but suffer in
product quality and future demand.
So:
- Set
your promotion spending in a competitive range (e.g.,
$50,000–$80,000 per market).
- Allocate
R&D funds to stay updated with product development, especially
if your features are lagging.
✅ Tip 3: Use Market Report to Set
Optimal Price & Features
Tip 3 is CRUCIAL: Study the Market Report
carefully. This report shows:
- Real
competitor prices
- Units
sold at each price level
- Product
feature levels
📌 Example:
- If a
product priced at $1,900 sells 2,300 units with 3 features,
- While
a $2,300 product with 6 features sells only 270 units,
→ You learn that moderate pricing and moderate features win more sales.
💡 Insights:
- Customers
may not prefer extremely high-end features.
- Overpricing
leads to low sales even with better products.
- Balance
price, features, and promotion.
For Tech 2, the same rules apply:
- A
product priced at $2,200 may sell 2,000+ units with 4 features.
- One
priced at $2,700 with 6 features may fail.
So, when planning:
- Use
historical price-demand relationships.
- Compare
against the features-to-demand pattern.
This gives you the foundation for accurate forecasting and
pricing.
✅ Tip 4: Check Market Outlook for
Demand Growth
Tip 4: Go to the Market Outlook section and check the
demand growth forecast.
For Round 2, you might see:
- USA
market: +10% demand growth
- Asia
market: +20% growth
- Europe
market: +5% growth
Use this to:
- Forecast
total market size for next round.
- Prioritize
investment and promotion spending based on growth rate.
💡 Example:
- If
Asia has 20% growth and strong demand, you might shift more marketing
budget and production capacity there.
✅ Tip 5: Optimize Your Production
Plan
This step is often overlooked.
✔️ First, match production
quantity to your forecasted sales, not your full capacity.
✔️ Second, monitor inventory
levels.
- Too
much leftover stock ties up cash and raises storage costs.
- Too
little stock leads to missed sales.
Also:
- Use
the Learning Curve: increasing production gradually over time
reduces cost per unit.
- Set plant
upgrades or relocations if needed (e.g., move production to lower-cost
countries if labor is cheaper).
✅ Tip 6: Plan Your R&D Based
on Market Preferences
R&D is not about spending more — it’s about spending
smart.
Study:
- What
features are customers in each region demanding?
- Where
are your products lacking compared to competitors?
For example:
- If
top-selling competitors offer 3–4 features in Tech 1,
- Don’t
waste time developing 6 features. Instead, match the sweet spot of
customer preference.
Adjust R&D:
- Add
or remove features gradually (1 or 2 changes per round).
- Avoid
high development costs for features customers don’t want.
✅ Tip 7: Strategic Marketing
Allocation
Each market responds differently to advertising, PR, and
price.
Tip 7: Allocate marketing budgets proportional to
potential ROI.
💡 Example Strategy:
- USA
is a mature market with stable demand → Moderate spending.
- Asia
is growing fast → High promotional investment.
- Europe
has lower growth → Careful selective marketing.
Use promotion spending by competitors as a benchmark:
- If
your competitors spend $50k–$70k and you spend $20k, you’ll likely lose
visibility.
Balance:
- Advertising
- Sales
Promotion
- PR
spending
Also consider:
- Word
of mouth effect (past spending builds brand equity).
- Diminishing
returns if you overspend in a low-demand market.
✅ Tip 8: Maximize Profit Margin –
Not Just Sales Volume
A big mistake in Cesim is chasing revenue without margin.
✅ What to do:
- Analyze
Unit Contribution Margin: (Selling Price – Production Cost –
Marketing per unit)
- Track
Profitability by product and by market
Even if you're selling a lot of units, your profit might be
negative if:
- Costs
are too high
- Discounts
are too deep
- Marketing
ROI is too low
Your goal isn’t just sales — it’s profitable
growth.
✅ Tip 9: Monitor Competitor
Behavior Each Round
Cesim is a competitive simulation. Every round, your rivals:
- Change
prices
- Update
product features
- Adjust
production and marketing
💡 Tip:
- Keep
a log sheet of their key moves
- Predict
their strategy in the next round
- Avoid
direct price wars unless your cost structure can win
Being proactive rather than reactive gives you an edge.
✅ Tip 10: Set Long-Term Strategy,
Not Just Round-by-Round Fixes
Finally, tip 10 is about vision.
Winning Cesim isn’t just surviving each round — it’s
building:
- Strong
brand equity
- Efficient
operations
- Sustainable
product lines
Have a clear plan for:
- Expanding
into growing markets (e.g., Asia)
- Launching
new products at the right time
- Shifting
resources based on ROI
Document your strategy:
- Round
2–3: Optimization
- Round
4–5: Market expansion
- Round
6+: Margin maximization and asset efficiency
🔚 Conclusion
To recap, here are the 10 Winning Tips:
- Check
Industry Overview & forecast based on past demand
- Study
Financial Statements of top competitors
- Use
Market Report to plan pricing & features
- Analyze
Market Outlook for growth opportunities
- Optimize
Production Planning and capacity
- Set
R&D strategy based on feature-demand alignment
- Allocate
Marketing Budget by market growth & ROI
- Focus
on Margin, not just volume
- Track
competitor moves and stay ahead
- Build
a long-term business strategy across rounds
Thank you for watching this Cesim Global Challenge Round 2
strategy guide.
If you found this helpful, feel free to share or get free support for future
rounds by contacting: cesimhelp2020@gmail.com
Good luck, and may your team achieve top results in all
rounds!
PART 2
Hello everyone, and welcome back to the Cesim Global
Challenge Simulation Strategy Guide – Round 2 Edition. In this video, I’ll
walk you through a detailed analysis of our decisions in Round 2, including demand
forecasting, pricing, production, logistics, R&D, investment, and financial
planning, along with 10 powerful winning tips to help your team
succeed.
Let’s dive right into the key metrics and decisions that
helped us increase our total sales by 63% this round and secure a strong
position in all three markets: USA, Asia, and Europe.
1. Winning Tip #1 – Demand Analysis & Forecasting
The first step before making any decisions is to carefully
analyze demand changes from the previous round. In our case:
- We
looked at last round’s actual sales volume in each market and
product (Take 1 and Take 2).
- Then
we compared that with this round’s forecasted market demand to
understand the growth trend.
For example:
- In
the USA market, Take 1 had modest growth, but Take 2 demand
increased sharply.
- In Asia,
Take 1 demand stayed stable, while Take 2 demand almost doubled –
growing from around 20% to 35% market coverage.
- In Europe,
Take 1 stayed consistent, but Take 2 demand tripled, rising from
12% to 32% coverage.
➡️ Key takeaway: Use the
forecasted growth trends to adjust your sales and production plan
accordingly. Focus your sales efforts on products and markets showing the
strongest demand increase.
2. Winning Tip #2 – Sales Target Planning per Market
Once we understand the demand changes, we set realistic
sales targets for each market.
- In USA,
we planned to sell slightly more Take 1 and maintain Take 2 sales,
since Take 2 was already strong.
- In Asia,
we aimed to increase Take 2 sales significantly due to the jump in
market share potential.
- In Europe,
we maintained Take 1 sales but expanded Take 2 aggressively to match the
high demand growth.
➡️ Don’t just copy last
round's sales plan — base it on demand shifts and your capacity.
3. Winning Tip #3 – Production Planning & Capacity
Balance
With demand estimates in hand, the next step is production
planning. Here's how we approached it:
- We
checked our internal manufacturing capacity and how much more we
could outsource.
- For
Round 2, we produced:
- 2,100
units of Take 1
- 2,200
units of Take 2
- Totaling
around 4,300 units
This aligned with our estimated demand:
- Around
4,600 units for Take 1
- Around
4,400 units for Take 2
➡️ Tip: Always align your
production volume with the adjusted demand forecast to avoid
overproduction or stockouts.
4. Winning Tip #4 – Outsourcing Strategy & Cost
Management
We also reviewed our outsourcing contracts:
- Outsourcing
costs vary between markets. For example:
- Asia
outsourcing cost: $100
- Europe
outsourcing cost: $140
To reduce future outsourcing expenses, we invested in
building new plants, especially in Asia. This helps us increase internal
capacity and reduce per-unit cost in the long term.
➡️ Invest early in
capacity to reduce dependency on outsourcing and improve gross margins.
5. Winning Tip #5 – R&D and Feature Strategy
This round, we allocated significant resources to R&D
to improve product features:
- We
spent around $55,000 to upgrade features in both Take 1 and Take 2.
- We
also purchased design and technology licenses to boost product
innovation.
Each market has different customer expectations:
- In Europe,
customers prefer higher features → we offered:
- 5
features for Take 1
- 3
features for Take 2
- In USA
and Asia, we used:
- 4-5
features for Take 1
- 2-3
features for Take 2
➡️ Match the feature levels to
each market’s preferences using customer insight reports.
6. Winning Tip #6 – Strategic Pricing for Profit &
Volume
We adjusted prices based on demand elasticity and feature
upgrades:
- If a
product had higher demand and upgraded features, we slightly increased
prices to boost margins.
- If
we aimed to capture more market share, we reduced prices slightly
to gain volume.
Example:
- Take
2 in Asia: Reduced price → demand surged
- Take
1 in Europe: Maintained price with 5 features → high margin and sales
volume
➡️ Smart pricing = balance
between profit margin and sales growth.
7. Winning Tip #7 – Logistics & Supply Chain
Optimization
We then ensured our logistics plan matched the
production and market demand:
- We
reviewed total production, outsourced units, and import/export flow:
- Exported
units from USA to Europe
- Imported
units to Asia from internal and outsourced facilities
Some markets had slight unmet demand, which is
acceptable early on. But we are planning new plant capacity next round
to fix that.
➡️ Keep logistics aligned with
actual sales targets to avoid unnecessary costs or unsatisfied customers.
8. Winning Tip #8 – Tax Strategy to Maximize Net Profit
Don’t ignore tax rates when making your profit
projections:
- For
example, USA has a lower tax rate, so earning more profit there
yields better net income.
- We
balanced profit generation across markets to minimize the tax burden.
➡️ Shift your profit centers to lower-tax
regions when possible, without compromising demand or operations.
9. Winning Tip #9 – Financial Health & Emergency Loan
Avoidance
We closely monitored our cash position:
- Last
round, we had a strong ending cash balance, allowing us to avoid emergency
loans.
- We
kept working capital healthy while still investing heavily in:
- R&D
- Marketing
- Production
expansion
➡️ Always project cash flow
for the next round to avoid debt and preserve flexibility.
10. Winning Tip #10 – Strategy Overview & Long-term
Planning
Finally, we reviewed the overall strategic performance:
- Revenue
increased from $1.5M to $2.5M → a 63% growth
- Variable
costs rose accordingly, but we controlled:
- Manufacturing
costs
- Feature
upgrade costs
- Transportation
& logistics
We also maintained a high R&D budget (~$92,000)
to sustain competitive advantage. Marketing and promotion were scaled to
support volume growth.
➡️ This performance is the result
of well-aligned, data-driven decisions across departments.
[SUMMARY – 15:00+]
Let’s quickly summarize our 10 Winning Tips:
|
Tip # |
Focus Area |
Key Action |
|
1 |
Demand Forecasting |
Use last & current round data to set targets |
|
2 |
Market-Level Sales Planning |
Focus on markets with rising demand |
|
3 |
Production Planning |
Align production with forecasted sales |
|
4 |
Outsourcing vs. Expansion |
Reduce outsourcing via early investment |
|
5 |
R&D and Features |
Upgrade features based on market need |
|
6 |
Strategic Pricing |
Balance price, demand, and margin |
|
7 |
Logistics |
Match supply with sales and exports |
|
8 |
Tax Planning |
Shift profit centers to low-tax markets |
|
9 |
Financial Stability |
Avoid emergency loans, manage cash well |
|
10 |
Strategic Performance Review |
Track metrics and plan next steps |
[ENDING – 18:00+]
Thank you for watching this guide to Round 2 of the Cesim
Global Challenge. We will continue updating this series with new video
lectures for each upcoming round — sharing insights, strategies, and real data.
👉 If you need free
personal support for Round 1 or Round 2, feel free to email: cesimhelp2020@gmail.com
📘
Also check out the full strategy blog at: https://top30tipsforcesim.blogspot.com
Stay focused, plan ahead, and good luck in the simulation!
Don’t forget to like, share, and subscribe for more winning strategies.
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