Capitalism Lab S02E07: COO Policy
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Capitalism Lab S02E07: COO Policy

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COO Policy

As the race to hit the revenues continue, I had been using delegating to my COO to sell products for profit maximisation. The rationale is that by going for more profit, I will be going for more revenue to cover ground quickly. My media business was slowly also growing and I found it interesting seeing how much money I was throwing into it. The COO Policy is a really interesting aspect of the game.

Lessons learnt in this episode while dazzling into COO Policy:

1. Media is a slow and expensive business

As you may have noticed the cheapest firms being sold were more at least $250-300m and the successful one owned by the government was going for more than $1bn. So I did decide to use the extra loan money that I had to buy a media company. I wouldn’t recommend doing that unless you have at least $3-4m to lose every month until you begin to gain good ratings and reach to gain advertisers.

2. Always advertise even if a little

One of the lessons learnt from the Food and Beverage Scenario was to always advertise early even if a little. Obviously don’t run yourself at a loss if you can’t afford to advertise. Usually advertising even at a loss is beneficial at the later stages of a game when your combined profit can handle a loss.

3. Balancing your COO Policy

I found it very interesting how the COO Policy works in Capitalism Lab. Going full Market Share makes them sell at cost price possibly to kick people out of the market or to draw people to your product at the start. At balance mode I assume, as I never kept it for the long term, they sell at cost until they get a decent market share then balance to make a profit. At profit, they sell it as expensive as possible at times not even selling at all. I think this part of the game needs another look. What I did find interesting about the COO Policy is that you can actually assign a policy per product. This is really cool because you can set your new products to go for market share and your existing established products to go for profit. I also found it interesting that the COO marketing policy was to disable marketing as my corporate branding was being hurt. But the problem is if you don’t go and have a look you will never know what’s happening which sort of defeats the purpose in a sense as you have to micromanage again. I haven’t used a CMO so I am not so sure how useful they are.

What do you think? Leave a comment below.

Also See: Mistakes to avoid in the Food and Beverage Scenario

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Capitalism Lab Story

Playing Capitalism Lab in my free time for fun.
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