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Finland-Based Rapala VMC Corporation Is the World's Largest Fishing Lure

question 92

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Finland-based Rapala VMC Corporation is the world's largest fishing lure manufacturer.It developed its first fishing lure-a cigar-shaped minnow-in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2003.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2008,Rapala unveiled the "dream lure for the 21st century."
-Refer to Rapala VMC Corporation.The testing of new lures by tournament professionals and fishing guides would take place in which stage of new-product development?

Definitions:

Collusion

Agreement among firms to avoid various competitive practices, particularly price reductions. It may involve either formal agreements or merely tacit recognition that competitive practices will be self-defeating in the long run. Tacit collusion is difficult to detect. In the United States, antitrust laws prohibit collusion and conspiracies to restrain trade.

Cooperative Actions

Efforts or operations undertaken cooperatively by two or more parties, often aimed at achieving a common goal.

At the Expense of Buyers

A situation where actions or policies favor sellers or another party, leading to disadvantages or costs for buyers.

Cartel Agreement

An agreement among competing firms to control prices or output in a particular market, often resulting in higher prices.