The simulation is like chess- no two simulations are ever alike. There are a variety of strategies teams can deploy, so what really matters is how distinct the strategies are within the industry. For example, you can play the six generic strategies outline in The Guide.

The richer the variety of strategies, the more likely it is that the industry will produce profit. Picture a surface. That is your playing field. On the surface there are hills. They represent the various strategies- broad cost leader, broad differentiator, etc. Some hills are taller than others. However, if two teams or more try to climb a tall hill, they have difficulty reaching the top because they tend to drag each other down. You might be better off on a smaller hill if you are all alone.

Strategic Issues

Your biggest strategic problem at the start is that all teams are identical. You will never find this in the real world. The closest you might come is a highly regulated industry, and even there, companies will do what they can to distinguish themselves from competitors. You cannot stop the differentiation process.

All industries evolve differently. In some, teams make a lot of money. In others, they beat each other up. Much depends on the number of different strategies on the playing field.

Consider the different ways companies handle the problem creating a strategy in the real world. They can create press releases that communicate their intentions (press releases can be posted in the Class Conferences). The press releases can outline their strategies to other companies.

Keep in mind skill level does matter, just as in chess. The more times students play the simulation, the better they get. 

Challenge Results

We run a Challenge each year in the Spring and Fall. There is a qualifying round where teams play against a set of computer managed companies. The top six then play against each other. The better students enter the Challenge, and the best make the finals, whereupon they encounter comparably skilled opponents.

The result is brutal competition. One year in the middle of the finals, the best cumulative profit stood at -$40 million. By the end of the simulation the winner had managed to eek out positive cumulative profit of $104M. This is less than the average class of beginners would produce.