You Make the Call-Situation 3

question 99

Essay

You Make the Call-Situation 3
Jay Sorenson of Portland, Oregon, created a product called the Java Jacket, which is a patented honeycombed insulating sleeve that slides over a paper cup containing a hot beverage to make it comfortable to hold. Having introduced the new product to the market, Sorenson has already cut deals with coffeehouses, specialty stores, and convenience stores nationwide. He started the business with $15,000 in 1993, but his 2003 sales were projected to be between $12 and 15 million. Sorenson is now in a position where he would like to continue expanding his business, but he is concerned that large and established competitors could introduce their own variations of the same product.
(Source: Don Debelak, "Send in the Clones," Entrepreneur, September 2003, pp. 128-132.)

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Definitions:

Ratio

A ratio indicating how often one number can encompass or be encompassed by another value.

Unknown Quantities

Refers to amounts or numbers that are not specifically known or determined.

Proportion

An installment, section, or count contemplated in proportion to its total mass.

Market Share

The portion of a market controlled by a particular company or product.