In this single-episode Decision Lab simulation, learners step into the role of Chief Strategy Officer at AeroJet Dynamics, an established Midwest regional carrier. Despite sustaining a robust 82.4% passenger load factor across its 68-aircraft fleet, operating margins have collapsed precipitously from 9.2% to 1.1% over two quarters. The carrier faces a simultaneous triple disruption: an ultra-low-cost carrier (SkySprint) entering its primary hub with a 30% structural cost advantage, a newly operational high-speed rail line capturing corporate travelers at 40% lower fares, and a regional fuel supplier merger that triggered an immediate 15% Jet-A price hike.
Learners must move beyond superficial explanations—such as cyclical demand slumps or operational pricing skirmishes—and apply Porter’s Five Forces framework to uncover the structural price ceilings and cost floors squeezing the enterprise. Working through route profitability dashboards, corporate travel procurement surveys, and supply consortium term sheets, learners evaluate four competing executive proposals, defend their recommendation in a live AI roleplay with CEO Henrik Lindqvist, and submit an executive justification before cash reserves run out.
This simulation is ideal for courses in Strategic Management, Competitive Strategy, Industry Analysis, and Executive Leadership. It bridges foundational strategy theory with analytical unit economics, teaching participants how to differentiate structural substitutes from operational rivals and counter concentrated supplier power through strategic repositioning.
Facilitators can run the experience synchronously or asynchronously. During debrief, instructors can highlight how defensible competitive advantage requires addressing both revenue ceilings and cost floors simultaneously, using AeroJet's route-level data to demonstrate why pure operational differentiation or price wars fail in structurally compromised markets.
Players tasks
- Introduce the session by asking learners why a business might experience declining profitability despite high customer demand and full operational capacity.
- Monitor learner progression through initial diagnostic MCQs and their AI roleplay exchanges with CEO Henrik Lindqvist.
- Lead a structured debrief contrasting single-force tactical fixes (price matching, brand upgrades) with multi-force structural realignment.
- Utilize the Evidence Debrief Matrix to explore how quantitative unit economics (CASK, fuel markups, fee discounts) intersect with qualitative buyer behavior (ESG mandates, zero switching costs).
- Facilitate peer discussion on the challenges of overcoming internal stakeholder biases during enterprise strategic pivots.
Learning objectives
- How to teach Porter’s Five Forces as an active, structural decision-making tool rather than a static academic checklist.
- Key distinctions between operational rivals (same product category) and structural substitutes (alternative solutions that impose permanent price and convenience ceilings).
- The strategic danger of the 'profitability trap,' where defending volume or market share destroys enterprise value when cost structures are asymmetric.
- How to demonstrate that sustainable competitive advantage requires simultaneously neutralizing revenue ceilings (substitutes, entrants, buyer power) and cost floors (supplier power).
- Methods for coaching learners to construct data-backed executive justifications that explicitly account for operational trade-offs and rejection logic.
About the authors
LiveCase Studio designs cutting-edge digital simulations that immerse learners in realistic executive decision environments. Combining rich narrative storytelling with real-time AI roleplay and rigorous business frameworks, LiveCase develops critical thinking, strategic judgment, and executive communication skills.
LiveCase Studio
LiveCase Studio designs immersive, interactive decision-making simulations that put learners into high-stakes executive roles to master business frameworks and strategic leadership.
Who is this for?
Undergraduate, MBA, and Executive Education students in Strategic Management, Competitive Analysis, or General Management, as well as corporate strategists and mid-to-senior leaders navigating disruptive industry shifts.