Business is one of the fast-developing industries that introduces many new technologies and innovations based on the past experiences. Many strategies that have been used several years ago might not be credible these days as the expansion of the industry does not stop. Nevertheless, it might be complicated to build new strategies which will not be based on theoretical ideas presented a long time ago. For instance, Porter (1996) stated that the basic strategy of every business is to deliver high-quality products or services for the most efficient price. The idea of one of the greatest business leaders is relevant today as many organizations are oriented on customer loyalty and the creation of a positive reputation.
The costs of employee training, high-quality materials, and reliable suppliers are extremely high, and businesses always look for the most efficient strategies to decrease the amount of money spent. Porter and modern business leaders supported this idea. According to Grant (2021), by understanding past mistakes, people build new and improved strategies based on concepts created by the previous generation. Those innovative strategies make the ideas of Porter relevant even these days.
Capsim simulation can be closely related to the ideas stated by Porter as all strategies provided by him might be simulated in artificial reality and tested for reliability. The system helps people who develop start-ups to understand if their competitive strategy will work in real life and the possibility of surviving in the fast-changing markets. As the main perspectives presented by Porter are customers and efficient pricing, the simulation can provide modern business owners with the ability to test strategic plans related to these aspects without any risk.
Grant, R. M. (2021). Contemporary strategy analysis. Wiley.
Porter, M. E. (1996). What is strategy? HBR.