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Your company has entered a new product into the market. In the first time period, 712...
A company is considering the development of several new products. Their chief statistician estimated the parameters of Bass's diffusion model for two potential markets. The markets are represented as: Market 1: S(t) 2.2484 .476Y(t-1) 0.0048728Y (t-1) Market 2. S(t) = 2.0500 + .01 1 Y(t-1)_ 0.0001024%2 (1-1) where S(t)sales (1,000s) in period t Y(t-1) total people who have ever bought by end of period t-1 a) For each market, what are the parameters of the Bass model (market size, initial...
A product based on a new technology has two major potential markets. The dominant uncertainty associated with it has to do with the technology rather than the markets. Accordingly, the product will succeed in both or fail in both, with equal probability. The markets are otherwise independent and may be entered sequentially or simultaneously either now, one year from now, or two years from now. Market A requires an initial investment of $100 regardless of when it is entered. If...
A company has launched a new product. This company is a reputed company with 50% market share of similar range of products. The competitors also enter with their new products equivalent to your new product. Based on earlier experience you initially estimated that, your market share of the new product would be 50%. You carry out random sampling of 15 customers who have purchased the new product and realize that only four of them have actually purchased your product. Test,...
The ABC Software company has been in the market place for over 20 years. While some of the development team members have changed over time, there was a firmly established culture using the Waterfall method. The typical process involved setting product requirements up front, some generated directly from customers and others determined by employees (developers and product managers, for example) who attempted to gauge the customer's needs indirectly. Once requirements were determined, specification documents would be written with varying details...
ABC Company, an outdoor furniture manufacturer, has decided to introduce a new, lightweight lawn chair to the market in the Spring of 2019. This product is new to ABC because for the last 50 years the company has focused on selling picnic tables wholesale. This product will be sold directly to retail stores by a newly formed sales force. As part of the New Product Team you will need to conduct some initial business analysis. Your team is putting together...
Your company is in the business of making computer monitors. Through a market survey, the company has identified a demand for a new computer monitor product and has also determined that the market would bear a unit price of $197. To manufacture this new product, however, the company will need to invest in a new production assembly line. You are asked by your boss to consider two options of production assembly lines. . Option #1: A labor-intensive process which has...
calculate payback period and IRR
Pappy's Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy's paid $165,000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $880,000 per year. The fixed costs associated with this will be $222,000 per year, and variable costs will amount to 18 percent of sales. The equipment necessary for production of the Potato Pet...
Cultural Concerns in International Expansion: lululemon athletica 1.The Canadian-based company lululemon athletica has successfully entered international markets. Its expansion so far has been to countries that share a common language and similar cultures, including the United States, Australia, and New Zealand. The company has been apprehensive about expanding to markets with different cultural attitudes. The leadership is now prepared for this next international expansion and has decided to enter the Chinese market. You have been asked to be a part...
One of your employees has suggested that your company develop a new product. You decide to take a random sample of your customers and ask whether or not there is interest in the new product. The response is on a 1 to 5 scale with 1 indicating "definitely would not purchase"; 2, "probably would not purchase"; 3, "not sure"; 4, "probably would purchase"; and 5, "definitely would purchase." For an initial analysis, you will record the responses 1, 2, and...
One of your employees has suggested that your company develop a new product. You decide to take a random sample of your customers and ask whether or not there is interest in the new product. The response is on a 1 to 5 scale with 1 indicating "definitely would not purchase"; 2, "probably would not purchase"; 3, "not sure"; 4, "probably would purchase"; and 5, "definitely would purchase." For an initial analysis, you will record the responses 1, 2, and...