COMPXM ROUND 1 STRATEGY GUIDE | 2025 - 2026
Hello, and welcome to the CompXM Capstone Simulation!
This video is designed to walk you through the strategy for CompXM 2025, with a specific focus on Round 1 and setting up the foundation for all four rounds. If you follow this strategy carefully, you'll be on track for a top result of 999/1000.
Let’s begin!
1. Overview of CompXM
CompXM consists of four decision-making rounds, and it’s much faster-paced than the main Capstone simulation. You’ll start the exam with four pre-existing products, each located in a specific segment:
- Thrift
- Core
- Nano
- Elite
Unlike Capstone, there are no additional segments, and you only manage four products initially — making the game more focused but also more compressed.
Because there are only four rounds, every decision matters. There’s no time to recover from mistakes, so planning ahead is critical.
2. Long-Term Product Strategy
At the beginning of Round 1, your company already owns four products. However, to gain a competitive edge, we add four new products — one for each segment.
Why? Because most of the added products will finish R&D development by midway through Year 2, and will be able to sell for a full year in Rounds 3 and 4.
So here’s the plan:
- Add four new products during Round 1.
- Assign each one to Thrift, Core, Nano, and Elite respectively.
- Set ideal spots using the Industry Condition Report (ICR) and adjust based on segment drift.
This strategy ensures you’re ready to dominate in Rounds 3 and 4 when these new products go live.
3. Naming Products and Segment Mapping
The product names are assigned by the system, but it’s critical to remember which product is in which segment.
For example:
- "ELLN" may be placed in the Thrift segment.
- "UPPR" may represent Core.
- "AGAP" is often a Nano product.
- "IPRD" typically lies in the Elite segment.
When you add new products, name them clearly by segment (e.g., TH2, CR2, NA2, EL2) so you can easily identify and track them later.
Keep your segment-product map clear from the start. Misplacing a product in the wrong segment will lead to poor customer fit and missed sales.
4. Pricing Strategy
Now let’s talk pricing — a major factor in CompXM success.
Your strategy should be to price near the top of the acceptable range for each segment, without exceeding customer expectations.
Recommended starting prices:
- Thrift: around $24
- Core: around $30–32
- Nano: around $38–40
- Elite: around $42
Important: These prices are high, but still within competitive range. Going too high will reduce your customer appeal and market share. In CompXM, each product’s price accounts for about 20–25% of customer buying criteria, so it's a big factor, but not the only one.
5. Forecasting Sales
This is one of the most important steps in CompXM Round 1: forecasting your unit sales.
Steps:
- Check last year’s unit demand (page 4 of the ICR).
- Note the expected segment growth rate:
- Thrift: 10%
- Core: 14%
- Nano: 16%
- Elite: 11%
- Input those figures into your Excel sales forecasting file (as shown in this video).
- For
Round 1, focus on forecasting only for the existing 4 products.
For Round 2 and beyond, forecast for 8 products total, since your new ones will be entering the market.
Accuracy in forecasting = no inventory loss, no stockouts, and better margins.
6. Marketing Decisions
Now let’s apply your sales forecasts in the Marketing module:
- Input your sales forecast per product.
- Set your pricing (as discussed earlier).
- Allocate Promotion and Sales Budget:
For existing products:
- Promotion: $1,500–$2,000
- Sales: $1,500–$2,000
For new products (which won’t sell in Round 1):
- Set budgets to $0 until they enter the market next round.
7. Production Planning
Next up is the Production module.
- Review existing capacity for your current products.
- Add capacity if your forecasted sales exceed current capacity.
- For new products (TH2, CR2, etc.), add capacity now — ideally around 500 units per product.
Why 500? It gives you enough stock to sell aggressively when the product goes live in Rounds 3 and 4.
- Set automation levels:
- Thrift and Core: 5.5–6.0
- Nano and Elite: 4.5–5.0
Remember: automation reduces labor costs but increases R&D time — balance is key.
8. HR and TQM Investments
In the HR module:
- Set Recruiting Spend to $5,000
- Set Training Hours to 80
These maximize productivity and reduce per-unit labor cost across all rounds.
In TQM (Total Quality Management):
- Invest $1 million per initiative in Rounds 1 to 3.
- Skip TQM in Round 4.
This improves product reliability, lowers material/labor cost, and improves margin. TQM benefits compound over time, so start early.
9. Finance Decisions
Now, let's fund all these decisions.
You have a spending limit of around $59 million in Round 1. Here’s how to cover that:
- Issue Stock: up to $40 million
- Long-Term Debt: up to $15 million
- Short-Term Debt: use only if needed to cover working capital
Avoid emergency loans at all costs — they kill your credit rating.
Also, monitor the Cash Flow Report to avoid overspending. You should keep at least $2 million in cash buffer at the end of the round.
10. Reviewing Performance
Before submitting, review your Pro Forma Reports.
- Income Statement: Check net profit (target: $10–12 million in Round 1)
- Contribution Margin: Aim for 38–42%
- Balance Scorecard: Should show improving trends in margin, stock price, and market share
- Inventory: Not too high, not too low — minimal leftover stock
In my trial simulation, this strategy gave us:
- Sales: ~$198 million
- Net profit: ~$11 million
- Contribution margin: ~38%
- EPS and Stock Price: Strong, with upward momentum
Summary – Round 1 Checklist
✔ Add 4 new products (Thrift,
Core, Nano, Elite)
✔ Set pricing near segment maximums
✔ Forecast accurately based on growth
✔ Adjust capacity and automation
✔ Invest fully in HR and TQM
✔ Fund decisions with stock and loans
✔ Check pro forma before submitting
What’s Next?
Round 1 is about laying the groundwork. If you do this right, Rounds 2–4 will build upon that momentum.
In the next video, I’ll walk you through Round 2 decisions, including:
- Managing 8 products
- Scaling production
- Adjusting pricing and sales budgets
- Tracking cumulative Balanced Scorecard performance
Get Support or Ask Questions
If you need help:
📩 Email us at: mbahelp2002@gmail.com
📘
Visit our blog for full winning guide: https://compxmguide2022.blogspot.com
We also offer FREE support for CompXM Round 1 and 2 — just reach out.
Thank you for watching!
Good luck with your CompXM — and I hope to see you in the next round strategy
video. Stay focused, stay sharp, and go for that 999/1000!
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