Top Secret Wallet Lab - Capitalism Lab, Ep. 5

howdy folks its Arthur Helms back with more capitalism lab so we are still on our first scenario but gunning towards the final goal and the only thing left to do like we started in last episode is dominance of the leather goods industry and that's gonna be a much harder climb than the goal of becoming the dominant company in the apparel sector which we did in under ten years it was about eight in-game years that was very easy and the reason for that is because there is a company that is very much entrenched in that industry out of my dominance report I can see that with just one that's why I've built one factory present each of these goods and I have one store only in Paris so the next obvious thing to do is to expand my retail operation into every city in the game but even doing that um there's one company that is just hugely dominant in that industry you can see here it's especially 93% dominance in the leather wallet product and that company is stars radiates you can see here they have um they're dominant in everything with a majority share in two of the three or three of the four goods and the biggest thing that's going to be in my way of dominating them is their technology um they've got a corporate brand strategy and a high corporate brand radar rating in every town but I mean that's not impossible to look at um myself I mean in my friend Laura sees locals the quality of my kids is low but I have no trouble getting a dump a pretty good brand position that's something that will just happen with time the challenge is the technology so in the goods that I am dominant in you can see my rating is 116 112 and genes hundred and sixteen in other jacket that's all well and good but in the ones that I am trying to get into the other goods I've got a rating of nine and I'm competing in some very high top technology so for leather wallet for example I have a rating of nine against a top quality of 207 and for the purpose of technology you're a purpose of production your technological rating is your current tech over the top tech so so for leather wallets for example I am nine hundred two hundred and seven if we look at the leather wallet production technology is 50% of the quality of my goods and to get that fifty I would have to affect technology of two hundred and seven so I'm only getting four production technology points for my correction of the other wallets and that's gonna cap my quality no matter how good my raw materials are which in this case is just leather and my love is not terrible quality 43 and it's improving because I'm training all the units it's the Technic it's the production technology so this leather wallet phonology which I'm gonna have 50-1 once I finished this research that's still not really gonna be good enough because I've got to get up into the hundreds and if we look at the firm I can see that they are also researching that and they are going to get they've done three years of research so they're actually going to be at four hundred and twenty once this research takes over in about a year and a half whether technology says leather wallet 278 when the top technology is 207 active because they're not using that technology in any of their units um or it's a bug but I've got to much more aggressively start researching these Goods and so I was thinking of doing is once this R&D finishes rather than having just three units free to these Goods I'm actually gonna switch to having a full R&D center devoted to each of those leather goods so just as these finish just kind of stocks that tech guarantee until the place is empty and take these two and then two more that I'm gonna build and have them still want to think on the two-year cycle I think that's the the best compromise I mean longer are indeed it means you get a higher return in terms of technology on the the time that you spend on the money you put into it but I need to move quickly so I don't there's a balancing act I don't want to wait for example ten years and then in ten years find out that my technology is not good enough to dominate the industry so I've just got a for that case wait till I start getting the notifications that that R&D is done and move them over to new more better firms but until we get there let's look at adding new retail stores in our other three cities so I've got one another good store in Paris here it is it's almost profitable which is fine I don't don't mind making a loss in these Goods when I'm just taking up my claim let's just move on to the other cities so here is Miami I will build a leather store find a place which I can tuck this in that has a good consumer traffic index 75 that's great so go me all cities and I've just got the four goods linked up an advertising firm is do me the radio station and let's try to position these prices okay so here the rating to beat is 87 that's not gonna be possible plus just make sure we're the cheapest 18 bucks Oh fine 1795 barely making a profit leather bag okay I already am the cheapest but the goal to here the goal here is to beat 62 that might be possible oh it is great leather briefcase I want to beat 68 as well I mean some of these things just sell for so much that just by being really really cheap you can be competitive even though there's no profit to be made in the with my entry in the leather goods market is not to be profitable for now it is just to be on the market there we go I'll come back to that in a moment my research of leather bags is complete ok let's pause here terminate that iron because I don't want that to continue in this factory or in that our Andes interval the new R&D centre use the pattern that is just all eight on one thing and that was leather bag right yes for two years and I'm gonna crank my training on all these ones that are making leather goods up to full alright so the bills will start taking through now I got to build a and there's leather belt exactly you can be terminated and I need to build a new R&D centre pause the game so your leather belt for two years that's like a briefcase so just real ink this up I've got the one in the center is the dominant one you will be loved a briefcase oh the briefcase so all the firms are connected okay an 87 so I'm gonna do just fine now once these guys take over I'm going to make this the leather wall and that'll be perfect sometimes back to this if I look at in this city I only have one firm that'll be my apparel store so I need to build a leather store in the city 96 Wow 99 I can build there wonderful hook up my goods as you do I've got the advertising unit link the best firm which is the TV station and once these goods get in here will and that is gonna be other wallet it's gonna terminate that I've gotta wait for these guys to finish so I can turn that unit over I can as these good start to come in there they are so for leather bag I need to beat 80 or be is be the cheapest and make it to 80 I can make it to 70 okay I'm gonna pause to finish this then we'll deal with that R&D unit a 52 is the one to be here I should be able to do that indeed briefcase 96 that I don't think is gonna be possible but there we go I can hit 69 with a small margin and finally the leather belt 94 is the ring to beat again not gonna happen but I can get a good rating I can't even cheapest tier 2 profit can i 1588 I'm not gonna be able to someone for 1588 might that's better than that so it'll be fine if I get down into I say 18 bucks and chain okay if you took a Warsaw steel but let's go deal with this iron DS in our first that's this one yes it is so terminate terminate not like that like that that and like that and you can research leather wallet for two years oh I missed one once again leather wallet okay 121 so especially as these units rise in quality or in rating I might do okay um I'll still have to be pretty price competitive but that's not a problem okay and then finally as far as the getting everything in here this town is still crazy with the IQ firm I turn off just treating my firm's look at the mini-map here they are totally dominating the town that is crazy but we knew it okay so need to find a place to squeak in a leather goods store here is more and more home Oh 4551 that's not bad 57 that's really good actually okay yeah 57 and we know the drill all the leather goods links not to an advertiser then you scrape her publisher and let's get our prices staked out hmm their quality is only 43 they've gotten complacent in this market that makes this pretty easy not so much for this one okay so their quality is 100 I can get 75 that's fine mother well they are only a quality 29 they just charging working with money obviously I deal with some real competition and finally the leather briefcase I have to beat 74 still do at a profit if just barely okay very cool all right so what do I want to go next with this um still doing well on all my goals let's see how my dominance is doing if I have to start worrying about the apparel That's not me outside heart attack there no I'm pretty solidly cemented um this is go back to the beginning and do another tour through our firms all right I'm just trying to i hit as much demand as I can all right one thing auntie that's what I want to do Dax I never actually swished having two jeans manufacturers did I I go firm factory product jeans there's only one let's do that next build another factory that makes jeans all from the Seaport that's fine I trust its decision and then go build a warehouse this is jeans warehouse with an input unit input unit storage unit storage unit output unit output unit only for me jeans one things to I'll say liftin already where is that other factory there you are yeah but you'll be on internal sale and now I'm gonna go to my retail stores first when I can find that's not a leather store and do the same bulk switch thing so we're his only jeans batch switch and all retail stores pushing five firms perfect that's what I wanted to do I'm wonderful ok so now let's do the tour through all my firms so in Paris I'm seeing here my sales units are all hammered by guess at the cost of my sales units not of my purchasing units as limiting things here so I will want another retail store in Paris in Miami it is just with the same except for sweaters I'm just trying to play me so I want another apparel store in Miami nothing bags blazer sole blacked out 39 million dollars stolen from stores ouch how about affected everyone this is Sol same thing I'm gonna want another apparel store Warsaw then thing for everything the sweaters I don't want another apparel store no points long jeans at a loss deli I said the second store and a pair our apparel store in Paris but it's the same thing going on here well farm with no wool in it but it is profitable that's great gonna bring this price down Blazers sweater price way down I'll a blazer factory it's breakin come down okay so cotton farmers making a quality forty cotton its profitable and worry about it and now into our leather goods stores and I think I might wrap up this episode after this pass of it so here I am over a demand for everything and making a nice tidy loss um let's just look so I am same thing and being the problem is that my sales units can't keep up with the demand so I needed training in the store I'm starting to get a brand rating my quality of everything has gone up because my first R&D came out so let's just raise some prices does my new jeans factory gonna bring the price down this is my warehouse sorry but that price will come down it's turned out some storage so that's great this is my other wool farm its price can come down this is my wool warehouse doing just fine got plenty of storage that's great that's exactly I want to accomplish here's in there leather farm I mean quality 39 leather care 51 leather sure Rd Rd I'm okay with making a loss and all this like I said okay here we are again at another this is the Paris leather goods store it's about profitable which is wonderful this does have the training on it I'm not advertising my lovely briefcases so might as well do that and let's just try to raise some prices here to meet demand has like some of the advice that I got on one of the comments there's no point in going into a price war if you don't have the ammunition to back it up and one of the things I don't have to back it up as you can see here is the actual capacity to push things through these sales units topping the price model they're both in a little bit why not another firm yeah your price can come down as well well their bags know I came from the price downs I'm not song but and I would note lost okay man this is Warsaw so I am constrained by sales for everything except leather belts okay that's cool let's look at what's happening other belts it is because well it's because there's a lot of competition you asked me what I knew about okay how can i price down a little bit yes because I'm not actually the cheapest that's the competition that's my problem so just lower pricing have to be the very cheapest moving along this is another R&D center doing its thing okay and then this is Seoul I did get the training course I guess so in soil same they're gonna want training because I am being pinned by my sales units once again for everything except all their belts what's going on here it's same thing someone's selling them for 15 bucks for I'm selling mine for 17 bucks making them have a higher rating I'm not the cheapest on the market so let's try to get to be the cheapest on the market this is a crowded market as you can see here okay so I'm bringing my first down all right that's fine and then here's my new jeans Factory and that's that tour done okay so I think this is a good place to end the episode we did see a couple things we can do one thing I did just notice I lost dominance of the apparel industry and why did that happen it's because someone pushed me into dominance of the sweater market and that's probably hexa turn rotor yes it is they were really pushing that okay so in the next episode we've got to get that back and a couple other things so to get that back we know what we have to do we've got the manufacturing capacity I'm pretty sure we've got the quality let's look at one of my apparel stores where is hey let's just see well into an apparel store in this city yeah so my goods are better my goods are a higher brand which is the very important thing for sorters so what I'm really missing out is that I only have two store selling and they have a lot and their things are selling huge quantities flavors really aggressively played at getting in the market you can see this store is selling thirty four thousand a month ish my stores are selling ten thousand so we already know what we need to do like I said it's get the I mean play the pricing game beat them on quality but also get the I mean I've got the ammunition so get into the price work but have the retail stores I need another retail store selling apparel in every city in the game and that should put me back on top um they're all being there all maximum training but a lot of them have leveled out they're all level 9 so that's the most quantity I can see um I'm not really curious I see their stores go to this store yeah so they have to you know to level nine units song sweaters I have one level nine units on sweaters at the department store that can do higher volume so yeah more apparel stores in every city to get me back on top of dominance that should be all that's required I think between my training in my supply lines my fundamentals are totally fine so that'll be the thing we do there and keep pushing really hard for dominance of the leather goods sector and let's see where we are for that no I keep looking at other companies mean let's warm up into the double digits this is doable it's so that I mean victories in sight just gotta make sure it we keep getting our quality up on the leather goods my leather quality keeps rising it's 54 now to the warehouse which is beautiful and just keep up the press on the retail game I've got tons of manufacturing capacity we know how to boost that with new factories if we have to so it keeps that push on push for the apparel goods like I said to regain dominance and sweaters and maintain anything else which we are perfectly positioned to do and with any luck in the next episode or two we'll actually win this scenario so we'll pick up with that in the next episode until then this has been capitalism lab I have been RJ Helms thank you so much for watching as always please keep the feedback coming I leave your comments below with any thoughts that you have but what I could do better what I'm doing well anything else you'd like to see either in this series or is in another series and don't forget to like this video and subscribe it to my channel if you want to see more and I'll see you next time thanks so much

  1. I agree that you already has enough ammunition (enough production for most products at the moment, probably enough if you just try for major market share, instead of monopoly). The logistic is largely fine , right now you just need more guns (more retails) and bigger guns (larger stores although sales growth slowly due to generally lower traffic index, but much higher maximum sales capacity)

    For a tough market domination battle, again like real battle, there are lots of strategy than simply fight the opponent head-on with brute force (price war). Sometimes for those highly competitive products, where there are multiple competitors on the market, you can buy technology from the second market share "competitor", and save you a lot of time to catchup to the 1st place runner. Remember the enemy of the enemy might be potential ally (for now XD). Also, if you want to have a higher level R&D, a lot of time you can find AI selling old R&D centers, you can buy those higher than lv 1 R&D from AIs. Save the time to train them (basically you are buying some integrable asset, the scientist's training). Even if there's no second runner and the tech gap to the leader is huge, you could still use multiple R&D, to jump tech level. (Instead of 1 R&D for 2 years interval, 5 R&D of 10 years each 2 years apart of finishing time, can give you much faster tech reach, but still a regular 2 years tech update to keep competitive on the market, since longer tech period usually has a higher tech point per year yield).

    Another tactic might be useful similar to real battle, is to hit where it hurts. Even nuking your opponents with $0.01 product give away, or full on advertisement millions a month to all the media to quickly raise your brand awareness. The goal is not to make money on that front, like in real battle. Be brave to sacrifice when necessary. On hitting the enemy, you don't even have to fight them head-on. Like real battle you can use guerrilla tactics or hitting from their behind, even working with your enemy's enemy, open a new front instead of face them directly. Like you can analysis your opponents products line and hit those profitable one specifically to reduce their profit, using $0.01 price nuke (but you only use a small factory or part of the producing line, just use minimum production ammo, and bait competitor to sell at a lost, the larger their market share start with, the more they lost). Or like leather goods where leather is the key strategic resource to produce them, so if you use large warehouses specifically purchasing their factories leather source, and create their ammo shortage, then you don't have to face more "enemy troops" in the retail front (i.e. no matter how many stores they have, if they do have enough product to sell, it doesn't matter if their rating is high). Sometimes, if your opponents are selling multiple classes of goods, even though you are fighting them with one type of goods, they must have other enemy in other classes. Support their enemy by selling those product of your "ally's", just help them push the product, and reduce your enemy's profit base, if you block all their exit, sooner or later they will run out of fuel (cash and profit), and begin selling their assets.

    Lots of unconventional tactics could be implemented if you put some thought into it, and think of it like a real war. And sometimes you don't have to go for the kill, but just co-exist with your enemy. A 34% 33% 33% split market, when you have 34% you are still "dominating" that product. Don't get obsessed with product over-all rating. That is mostly a reference. Different cities even have different preference (different ratio of quality/price/brand concern). A "profitable" products can take many form. If you are not look for monopoly, you can use tactics like knockoff, selling real cheap, and win by quantity alone. You can go for brand domination, where you buy media firms to make advertisement essentially free. Normally there are some key rating mile stone. the quality of 30, 60. Price 1/2, twice than the local standard price. brand over 50. Aim for not just relative strength to competitors, but also absolute advantage over local/average ratings. Cheapest price can only get you so far.

    Looking forward to how this plays out (I imagine would take long, if you play your cards right), and next challenge game. Also really like to see some information around the world. Sometimes I found some very interesting things when "spying" what others are doing. Not for gathering intel, but just for the giggles XD, AIs sometimes did some very stupid thing. (also an overview of the world give people a better idea of the this world over all, this is a business sandbox game after all, sometime I miss the world map of old Cap Plus)

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