In the late 1990s, Israel's long-distance telecommunications market was stable, predictable, and dominated by one company. But change was on the horizon, and few saw it coming.

The company in question had reigned supreme for years. Every default "00" dialed for international calls automatically routed through their system, ensuring a steady stream of revenue. When the market opened to two new competitors, the industry braced for mild disruption—but nothing too dramatic. Or so they thought.

Enter the simulation: a hands-on exercise where managers tested their business strategies in a risk-free environment. The simulated product? A one-minute call to the U.S., initially priced at $1 per minute, mirroring real-world rates. For two workshops, the price held steady. But in the third workshop, the game took an unexpected turn. The price dropped to $0.30—a staggering 70% decrease.

The managers were floored. Surely, this was a contrived twist, a rigged outcome designed to shock them. But it wasn't. The pricing shift had emerged organically from competitive decision-making within the simulation.

When the workshops concluded, the managers gathered for a debrief. Most dismissed the event as an anomaly. "A 70% price drop in the real world? Impossible," they scoffed.

The CEO leaned forward, his expression serious. "If it can happen in a simulation," he said, "it can happen in reality."

That moment marked a turning point. The team didn't shrug off the lesson—they embraced it. They revisited their strategy, reworked their cost structures, and streamlined operations. They planned for a future where the impossible became possible.

And then, it happened. Within a few years, the cost of long-distance calls plummeted by 70%, just as the simulation had predicted.

The original market leader floundered. Their systems, pricing models, and assumptions hadn't adapted to the new reality. Meanwhile, the company that had taken the simulation's lesson to heart stood strong. They remained profitable while competitors bled cash, capturing market share with confidence and clarity. By the time the dust settled, their market share was nearly equal to that of the long-standing leader.

What Happened?

Insight: Recognizing the potential for drastic price shifts‍

Action: Preparing with cost structure adjustments and strategy updatese‍

Result: Profitable growth while competitors lost market share

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→ Using financial acumen to anticipate market shifts is a Better Business Decision

→ Gaining market share during industry disruption is a Better Business ResultCost savings of USD 4 Million is a Better Business Result

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