SAP Distribution Game

I enjoyed the SAP Distribution Game. My team ranked last because our net sales did not exceed our expenses, resulting in a net loss. My team's strategy (although unsuccessful) was to market the products of water that were not selling as much and raise prices a little in order to make a profit. However, our prices were below our products' competitors, which gave us a disadvantage since our ending sales were low. I believe that when conducting business, high profit is what each company strives for, although other factors need to be considered as well. A high margin, an efficient sales strategy, and return on equity are all equally important to the company's overall success. If one area is ignored, then the company's net income will not meet its full potential. I think that my team's biggest strength was marketing the slow-selling products in different regions. As soon as we marketed the products, our inventory would significantly drop because the products would rapidly sell. Our biggest weakness was creating ourselves a net loss. In order to sell the products, we only raised the prices a little, keeping them fairly low. In the end, this proved to be a negative strategy because we bought more than we could sell, because our competitors were receiving all the business. During this activity, I learned that it is best to market products in different regions. I also learned that it is crucial to keep up with the inventory records, which can significantly change by the minute.