Demand factor Website development
Part of GMC simulator with website development did not changed much compared to the previous version of simulator. Website level by analogy with product quality estimation is also determined not by fixed number of stars (1, 2, 3, 4, 5), but numerically. But in contrast to the product quality estimation, sheet “W” with original data for management report does not contain such information.
Series of tests showed that level of the website (number of stars) depends only on investments in website development, other factors do not affect or their influence is insignificant. Searching exact formula for calculating the number of stars from investments failed, but it is not the key to understand website development. Optimal investment strategy for the website development can be easily found by tests or brute force management reports.
Each website level requires exact investments in website development to maintain achieved website level. In other words, there is a minimum of investment. For example, if we have 5* website and invest in next periods 20 or 30, then website level will fall to 4*, etc. Minimums (may vary by +/- 1 for particular scenario):
- 1* - 1
- 2* - 2
- 3* - 6
- 4* - 15
- 5* - 40
Website development Influence on sales
Website development affects only on sales in the Internet. Effect comes in the current period, but depends on competitors in the group. For example, if you are the only one in group of 8 teams who have invested in the website development, you get big increasing in sales than in the group where all your competitors have also invested in the website development.
Influence on demand from website development is presented on diagram, like a power function. Growth of demand practically ceases after 35-40 and further increasing of website development practically has no effect on demand. Number of stars of website does not influence on demand and serves only as an indicator of website development spent in previous periods.
Investments plan for website on scenario 12C1 (39 is for holding 5* website only on scenario 12C1, for remaining is 40):
1 period - 57 (5*), 2-5 period - 39 (5*) = 213 for 5 periods
1 period - 44 (4*), 2 period - 44 (5*), 3-5 period - 39 (5*) = 205 for 5 periods
On demand only affects amount of investment in website development.
The number of stars of the website does not influence on demand.
You can find the best Website development plan for each scenario in our database catalog.