Capitalism Lab - Building a Technology Company! - Challenges in the Supply Chain!

Building a technology corporation – How difficult can it be? Those companys are the largest companys on the world! The control and management of the supply chain as well as improving the technology is key for a technology company. Capitalism Lab + Subsidiary DLC + Digital DLC. Watch, learn, play by yourself and have fun! :-) -- Watch live at   / lightproton  

00:00 - Intro
07:40 - Gameplay

► Being innovative and keeping pace with the development of technology is key. To achieve this, we consistently apply the vertical integration concept forward and backward and very well manage our supply chain. We develop and manufacture our own hardware and software. Also, our corporation launches their own retail chain to distribute our products through our own online store and own retail stores. In the end, our company gains high control on manufacturing abilities as well as on the sale point to the customer. With the excellent management of the supply chains, our corporation keeps on delivering the best-in-class customer experience with the most innovative products. -- https://en.wikipedia.org/wiki/Technol...

► Disrupted supply chains, is exactly what was the primary driver of the global chip shortage in 2020 to 2023. The global chip shortage led to huge price increases for computers, graphic cards, and automobiles. Several causes added up to the perfect storm which led to the price increases. It started with the responses of governments and administrations to the COVID-19 pandemic which were one of the reason for the start of the crisis. The strict containment enforcements as well as shutting down businesses by governments, lead to the immense shortage in supply. At the same time, sending workforce to work from home and work from remote, the demand for computing and electronic devices increased tremendously. To absorb the economic shock of the Covid-19 responses impact, governments massively funded private consumption. When supply is disrupted and demand is overheating, markets become dysfunctional. The resulting chip scarcity led to extremely high prices and caused a snowball effect with further disruptions in businesses which also rely on chips and electronics, like the automobile industry. More than 40% of automobiles manufacturing costs are already accounted for electronics in recent years. Additionally, the automobile industry was in not as good as could be control of their supply chains and of their inventory management. No surprise, that the global ship shortage hit the automobile industry very hard, especially when inventory management is not done as good as it chould be. -- https://en.wikipedia.org/wiki/Global_...)

► In general, the Chipmaking industry is a very complex and cost intensive industry. Just a handful of chipmaking brands, the so-called foundries, account for most of the global chip fabrication because it is so hard to master the technology. For sure, this is a huge bottleneck when the semiconductor industry only relies on a handful of foundries. Furthermore, the bottleneck gets even more critical around chipmaking equipment. Only a handful of companies can provide advanced photolithography equipment which can produce today’s cutting-edge chips. Those bottlenecks in the semiconductor industry can potentially expose further risks to the supply chain of computing and electronic devices. -- https://en.wikipedia.org/wiki/Semicon...

► In this session, we will start a scenario, where we will attempt to launch a technology corporation from scratch in the business simulation game Capitalism Lab. Capitalism Lab simulates our real-life economy. Starting your own corporation, you can apply and try out business strategies which you can see with well-known companies in real-life. Already the base game enables to produce the hardware of electronic devices by making use of the available input materials and semi products. To bring this to the next level, the Digital Age DLC adds more specific mechanisms of the technology industry to the game. With the Digital DLC, besides hardware manufacturing, also software companies are added to the simulation as well as internet companies, e-commerce and the telecom business are introduced. Research and development get even more difficult in the Digital DLC with the new talent system. To successfully execute R&D and advance in the product technology, talents must be recruited and retained by your corporation. -- https://www.capitalismlab.com/

► Our scenario will be split into two parts. This session, part 1, covers building up the technology company to produce and sell so-called black goods. We will need to perfectly manage our supply chain, our inventory and R&D, as explained before. In the next session, in part 2, also software development and the internet industry are getting in the focus of our corporation.

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