In Commercializing a New Product, Market-Entry Timing Is Critical

question 9

Essay

In commercializing a new product, market-entry timing is critical. Suppose your company has completed its development work on its new "pet food feeder" product but learns that a competitor is close to launching a competitive product. What three choices does the company face?

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Definitions:

Investment Opportunities

Potential prospects or ventures that could yield financial returns or profits for investors.

Cash Savings

Funds that are kept on hand or in a bank account and are readily available for use in emergencies or for future purchases.

Simple Rate of Return

The percentage of annual incremental net operating income to the initial investment cost.

Cash Operating Costs

Expenses directly related to the production of goods or provision of services that must be paid in cash.