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21 November 2008
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Mobile Phone Subscribers Microworld

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General information
Versions available
Key learning points

Download a demo or a personal licence for the Mobile Phone Subscribers Microworld

Mobile Phone Subscribers Microworld - General information

This simple Microworld is set in the context of the Mobile phone industry which, since its establishment as a seriously practical service in the 1980s, has gone though a number of stages of development. However a feature at all stages has been the tendency of these markets, once started, to reinforce their own growth.

There is a counteracting challenge arising from this very growth – namely the critical need for network operators to provide enough capacity to cope with the rapidly increasing demand. In this simple simulation your role is to build the customer-base of subscribers as rapidly as possible, and to ensure this growth is matched by increases in the capacity of the network to meet the demand. You have two main items are under your control - marketing and the ability to increase network capacity.

Although very simple the microworld illustrates important dynamic concepts and the tutorials and challenges provided with it help to draw these out. This is a small simulation, supported by a short description of a common situation, rather than a full Microworld, which would be a larger simulation with extensive case material.

Authors: Kim Warren and Christina Spencer

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Mobile Phone Subscribers Microworld - Versions available
The Mobile Phone Subscribers Microworld is a PC based simulation, running on Windows 95 and above. It requires less than 5 Mb disk space and will run on PCs with 32Mb RAM although performance is enhanced on higher specification machines. There are three types of licence:
Demo Version The demo version consists of a link to the software for download and an introductory user guide.
Single User Licence The single user version is licensed for personal use only and may not be used in training or consultancy. Purchase may be made online. The software is the same as the demo version so there is no additional download to be made. You will be provided with the link to the software, an unlock code and a learning guide.
Site Licence The software for the site pack for academic or corporate use is the same as for the single user version. Site packs contain additional materials (slides, slide handouts, and annotations) to enable front-of-class delivery. The cost of site packs includes copy permissions for the materials as well as software usage fees. If you would like further information on site packs and prices please contact us stating which product(s) you have an interest in, the type of organisation that the product would be licensed to (academic, corporate, executive education) and the size of group with which it might be used.
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Download a demo or a personal licence for the Mobile Phone Subscribers Microworld
Mobile Phone Subscribers Microworld - Key Learning Points
Accumulation and depletion (building and losing) of a customer base (or other resource) over time

Reinforcing feedback drives growth from word of mouth

Balancing feedback limits growth, due to capacity limits
Context: exploiting a finite pool of potential subscribers to a mobile phone service

Contexts where similar generic issues arise - customers accumulate in virtually every business context; word-of-mouth drives customer growth in many industries, customer growth is limited by the business's capacity to support sales or service in many cases.

Contexts where similar specific structures arise - exploiting a potential new market for any capacity-limited service (internet services, travel, leisure, business services etc.).

Exclusions: This simple microworld does not include rivalry or soft factors (such as reputation).
Decision inputs: New subscribers per month from marketing

Target new capacity after 6 months' lead time
Performance outputs: Subscriber base and quality (revenue per subscriber)

Subscriber churn (loss rate)

Earnings
Challenges: 3 challenge games are supplied offering a range of challenges to test your understanding of the resource system.
Teaching uses: Strategy Dynamics course - resource-building and attrition, with feedback (reinforcing and balancing).

Strategy courses or workshops - basics of resource-based view (RBV): connection between resources and performance.

Systems thinking courses or workshops - resource-building and feedback (reinforcing and balancing).

Marketing courses or workshops - basics of customer-acquisition and retention, driven by marketing and limited by service capacity.

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