Demand factor - Seasonality

27.01.2017

Demand for your company's products is highly seasonal. Seasonal demand is different for each market (EU, Nafta, Internet), but the same for all products (1, 2, 3) in particular market. For example, if seasonal demand in EU market is +5%, it means that demand for each type of product in EU market increases by +5%.

Official Global Management Challenge manual notes that usually the peak of demand is in 4 quarter of the year, but in fact the peak of demand may hit in any quarter of scenario because of simulator developers choice. In other words, predicting behavior of market, and rough estimating of seasonal demand effect in advance is not possible until you play a few games in a particular scenario. To accurately evaluate the impact of factors you need to analyze hundreds of management reports and take into account effects of other factors besides seasonality of demand, then calculate average result.

For example, this is seasonality of demand for scenario 12C1:

  1. 1 period: EU +2.5%; Nafta +1.1%; Internet -4.1%.
  2. 2 period: EU +5.0%; Nafta +0.1%; Internet +3.8%.
  3. 3 Period: EU -2.7%; Nafta -9.9%; Internet -2.1%.
  4. 4 Period: EU +4.4%; Nafta +6.5%; Internet +5.2%.
  5. 5 period: EU -18.1%; Nafta -12.0%; Internet -11.0%.

 

Hints

  1. There is no residual effect on demand from seasonality
  2. The dependence of demand on seasonality is expressed as a constant
  3. The effect on demand from seasonality differs across markets, but is equal for products
  4. The dependence of demand on seasonality is not influenced by competitors in the group

 

Automatic demand forecast based on seasonality is built into the Calculation model, which can be purchased in our store.