Greeting
Welcome to What to Do Next! This applicaiton is a strategy assesment and bsuiness simulation, you'll face decisions about product development, market analysis, and resource allocation. In this Simulation you assume the Role of a large European manufactere of refigeration products called Frigus
Mission
Product
As the new CEO of Frigus, Inc., you oversee a comprehensive refrigeration appliance portfolio serving Western Europe. Your product line includes freezers in sizes from 108 to 220 liters, refrigerators ranging from 105 to 332 liters, and combination fridge-freezers with capacities between 235 and 350 liters. All units are environmentally friendly (CFC and HFC free), with premium models featuring fast freeze options, automatic defrost, and bacteria-safe systems. Available in white, gray, and black finishes, your products have established Frigus as a market leader with a dominant 30% share, delivering approximately 2 million units annually with consistent 20% profit margins.
Competition
The Western European refrigeration market is a mature landscape dominated by five major players, with Frigus as the recognized market leader. Competition has stabilized in recent years, with minimal fluctuation in market shares as each competitor has established their unique positioning. Your competitors typically release just one new model annually, allowing for predictable market dynamics. With Frigus maintaining a consistent 30% market share over the past five years, you've demonstrated resilience in this competitive environment, but must remain vigilant about market trends and competitors' strategies to maintain your leading position.
Distribution
Frigus products reach customers through two primary channels that divide your sales almost equally: large retail chains selling household appliances and electronics, and specialized kitchen design suppliers. The broader market trend shows large retailers gaining dominance across all product segments, capturing 54% of freezer sales, 57% of refrigerator sales, and 68% of fridge-freezer sales. These major retailers offer wider market presence and competitive pricing, gradually taking share from independent specialists. With an average consumer price point of €480 per unit, retailers typically apply a 50% margin, while Frigus maintains a 20% profit margin (€96 per unit). Your distribution strategy must balance these channel dynamics to optimize market coverage and profitability.
Management
As CEO of Frigus, you lead an experienced executive team of industry veterans. François Chasseur, Senior VP of Strategic Sourcing since 2002, brings nearly 50 years of company experience having joined in 1973. Tina Aurelios serves as Executive VP and Chief Technology Officer since 2003, following her start as a project engineer in 1995. Silke Melange oversees Corporate Affairs and Legal Counsel, having been with the company since 1983. Tim Willems leads Marketing Operations since 2001, building on his experience since joining as a sales manager in 1994. Each quarter, these executives will present strategic action plans for your prioritization, representing diverse expertise across sourcing, technology, corporate governance, and marketing.
Resources
Frigus commands significant operational resources to support its market leadership. With annual sales of €960 million and production facilities located throughout Western Europe, the company has manufacturing capacity of 600,000 units per quarter, exceeding your average quarterly sales of approximately 500,000 units. This provides operational flexibility to manage seasonal fluctuations or pursue growth opportunities. Your established business network includes relationships with distributors, media channels, after-sales service providers, real estate developers, and complementary product manufacturers. These resources, combined with your strong market reputation for reliable production, quality products, and excellent service delivery, position Frigus to maintain its competitive advantage while pursuing strategic initiatives.
Market
The Western European refrigeration appliance market presents a mature but stable business environment with modest growth between 0-1% annually. Consumer demand primarily stems from replacement purchases as existing units reach end-of-life or from new housing construction. Market analysis reveals varied performance across product categories: freezers show slight decline (-0.7% to 0.2% growth), refrigerators demonstrate similar modest trends (-0.4% to 0.3% growth), while fridge-freezers represent the strongest segment (0.3% to 1.8% growth). With most households already owning refrigeration appliances, the market is characterized by its saturation and incremental growth opportunities. Your business network encompasses diverse stakeholders including distributors, consumers, media channels, service providers, real estate developers, and complementary businesses—all crucial relationships to navigate for continued success in this competitive landscape.
