Capitalism Lab - Massive Profits with Vertical Integration! - First Intro then Play!

Building a corporation with massive profits from a fully vertically integrated corporation. We start a new enterprise and generate first profits within four months by leveraging the economics concepts of vertical integration and economies of scope: Jewelry and Furniture. Watch, learn, play by yourself and have fun! :-) -- Watch live at   / lightproton  

00:00 - Intro
09:14 - Gameplay

► Launch a new multi-national corporation from scratch and taking over the role of a CEO. There is a very easy way to simulate this in a business simulation game like Capitalism Lab. Capitalism Lab simulates our real-life economy. So, we can apply and try out business strategies which you can see with well-known companies in real-life. -- https://www.capitalismlab.com/

► A business simulation game is a strategy game. This means, it requires strategic thinking. It is essential to define a strategy before entering the competition on the market. We want to define a strategy which we think will let us successfully accomplish our goals. Subsequently, we must take the correct decisions while executing the strategy to leverage on the benefits of the strategy. Also, always keep in mind that in most cases a strategy comes with downsides and risks. Therefore, we will have to take measures to minimize the risks associated with the strategy. Otherwise, we might experience bad surprises and if all goes wrong, our corporation goes bankrupt.

► In our session today, we will try out a strategy which is for example used by Apple and Alibaba. It is called: vertical integration. The huge benefit is a cost advantage due to lower transaction costs and a high control on dependencies in the supply chain. Remember, if there are gains, there also will be downsides. The downside is that it needs might need huge capital investment – means it can get expensive. If it fails, the company could lose a lot of money. -- https://en.wikipedia.org/wiki/Vertica...

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