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Essay / Research Paper Abstract
A 5 page paper examining the wisdom of introducing a new communications device. The management of Reliance Communication, Ltd. needs to assess the wisdom of approving a budget for a new product. It has introduced several new products in recent years, but none has been commercially successful. The company needs to ensure that the current project has more than only a chance to succeed. The paper determines the break-even point of the project and makes recommendations as to how Reliance should proceed. Bibliography lists 1 source.
Page Count:
5 pages (~225 words per page)
File: CC6_KSmktgProdIntroNPV.rtf
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Unformatted sample text from the term paper:
The management of Reliance Communication, Ltd. needs to assess the wisdom of approving a budget for a new product. It has introduced several new products in recent years,
but none has been commercially successful. The company needs to ensure that the current project has more than only a chance to succeed. The Situation
The company is considering introducing a new product and is considering how it can best approach the project to ensure financial success. The product under consideration
is the fourth in two years, and the companys history is that new products have been technically sound but have not found commercial success.
The product currently being considered is one that would be of interest to individuals and small businesses, and a market already exists for it. A competitor in the
industry already offers a similar product that sells for $2,250. Reliances product can be sold for $1,500 to the end user. "Can
be sold" is the operative phrase here, and one that Reliance must realistically address prior to investing any capital in yet another project. The companys three previous products could
be sold as well, but obviously were not. A multinational company has shown interest in purchasing the product from Reliance at $1,000, but it has not committed to a
minimum purchase. It also will require exclusive rights to market the product. Management will need to decide soon whether to approve a budget for the project. It
will need to have several questions answered before being able to arrive at a sound decision. Questions to be Answered Reliance cannot approach
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