The Application Of Market Share Model In Management Simulation Teaching

The advent of the new decade, in the buyer's market of increasing diverse product and excess supply, the competition between enterprises is becoming fierce. In order to improve the competitiveness of enterprises, human resource is the key point. It is especially important to train and to bring up a large number of entrepreneurs with pioneering spirit and innovative thinking. For almost a century, participatory approach (Engaged learning Techniques) plays a large role in developing modern management talents. Management Simulation (Business Simulation) is a kind of participatory approach. Management simulation design in the current research receives increasing attention, especially in the rapid development of IT technology. Many simulation designs relying on software emerge in endlessly. The key point of simulating the market competition is to simulate how to fight for market share.This paper systematically analyzed the influence factors, such as brand, selling price, promotion, advertisement, channel, etc. On the basis of the theory of appeal, it analyzes the MNL model and MCI model definition and estimation and expounds the model prediction process in detail. Based on the market share model, it calculates product sale price and promotion of elastic to analyze the influence degree between each affecting factor and market share.The paper uses MCI model to analyze the collections of the sales data of six motor sales enterprise products. The results show that MCI model could imitate the collected sales data and find out that the brand has significant influence on the motor market share, the activity of promotion and the discount promotion have larger force, and advertising promotion and gift promotion have little influence, and the influence of sales price is not significant. In addition, this paper analyzes that the elasticity between sales price, promotion and market share. It found that the brand of bigger sales price elasticity does not make its market share variation big. This is because its market share has differences caused. It could say that the benefits of enterprises with smaller market share are limited by price reduction. To take some brands for example, it took market share simulated to forecast analysis and found that enterprises with price and promotion strategies for mutual coordination and adjustment have the help to improve or maintain market share. The analytical method for teaching management simulation and the strategy made by group members provides a great help. Finally, this paper discusses two applications of market share model in management simulation teaching. One is for the design of weights of affecting factors, and secondly management decision-making results simulation.This study explores the market share and its influencing factors. It conduces to reality of the management simulation teaching and the teaching effect. It helps to train the participants with management decision-making ability and abilities of perceiving market dynamic. It provides a further improvement for management simulation teaching.