In this episode I began analyzing my supply chain. As I grew exponentially, a lot of the raw materials were in shortage. So I pretty much made a warehouse for most raw materials so that I am able to be worry-free for the rest of the game. Some products required more production so I even had to shuffle my warehouse around and link them back at the retail stores. Finally, I saw one of my competitors have a bad day and decided to buy them up after taking a $1bn loan. I’m just left to merge.
Lessons learned about my supply chain:
1. Take a step back and analyze
Growing very quickly brings the challenge of stretching your raw materials very quickly as the strain that comes with growth becomes hard to estimate. There are advantages to growing very quickly however the downside is pretty much your supplies being overrun as you probably didn’t think you needed that much. So take a step back and analyze your supply chain, it is very possible a simple thing such as eggs is causing shortages.
2. Compete for every percent of the market share
If you are fighting for dominance, every % matters! Scan which products you need dominance in and in which city and start sell more of it or at least make more stores to sell them. That is when you will begin to push because when the market starts to get saturated someone has to lose. At the same time if there is still space to sell more than you should be the first to claim it so that your dominance increases.
3. Sometimes it’s easy to buy them out
If you are a massive company, there is no point in competing if you can just buy them out! Especially when their shares are dropping like flies. Why compete when you can have their market share combined with yours? 😂
What do you think? Leave a comment below 🙂