Marketing Case
Please read the case and go back to the lecture, book and other research to answer the questions associated with the case. References needed. The answer must be original. Thanks.
（I uploaded some documents you may need to apply in the assignment.）
Product Case:
Jim Beers has been running his own business for 20 years. Jim’s company produces levels. You know the type the carpenters use to level bricks or that people use to level pictures when they are hanging things on the wall. The technical name for Jim’s products is a spirit level which has been used since Roman times. Jim remembers that 15 years ago there were over 100 manufacturers of levels but now there are only 4 or 5 American based businesses.
Jim’s manufacturing procedures have changed little since he began the business. He uses aluminum and plastic to produce his light weight but highly durable levels. His products are premium priced and enjoy a reasonable market share of the high end level business.
Lately, Jim has noticed his sales falling due to a new competitor that produces a laser level which makes the brick layers job easier by extending the working area of the level. Jim’s levels are 4 to 6 feet long for bricklayers and laser levels are short, easy to carry and extend for over 100 feet. Jim has noticed that most bricklayers like to stick to the old methods but some are adopting the laser levels along with his standard level depending on the job.
Jim is not sure whether to go into the laser level business, he has a friend who knows a European supplier of laser level technology but he is not sure whether the new product will enhance or degrade his product lines. He also is not sure about the investment since very few of the laser levels are being used in his traditional target markets.
Questions:
1.What stage of the Product Life Cycle are Jim’s Levels? Explain why.
2.What are the Foster Curve effects of Jim’s business?
3.What should Jim do about the new competitor?
4.Should Jim move into the new technology and divest his current products?
5.What other factors should he consider? What is his Porter Strategy?
Tips of answering the assignment
- What stage of the Product Life Cycle are Jim’s Levels? Explain why.
Jim’s levels are likely at the maturity stage due to leveling off of sales and the oligopoly make up of the market.
- What are the Foster Curve effects of Jim’s business?
The new technology is starting to affect Jim’s business due to a leveling of sales. If, sales start to fall Jim is in trouble with his market. The new laser technology will replace his existing products over time.
- What should Jim do about the new competitor?
Jim should what his market share and sales very closely for the next few sales periods. If, his sales start to fall he should adopt the laser technology in his business. Given the existing situation, he should explore combining the use of the new technology with his traditional products.
- Should Jim move into the new technology and divest his current products?
Not at this point, he should wait and study the adoption process of the new products and maintain his existing lines as Cash Cows. If his sales slow even a small amount, he should move into the new products while maintaining his existing lines.
- What other factors should he consider? What is his Porter Strategy?
He should study the experience curve to evaluate where the competitors are in costs compared to his potential investment. If, the new competitors have a major cost advantage he may want to form a partnership or buy out a competitor to gain the advantage of the new technology.
His current Porter strategy is Differentiation. He may want to continue this strategy with the new technology if he is behind on the Experience curve.
- What stage of the Product Life Cycle are Jim’s Levels? Explain why.
Jim’s levels are likely at the maturity stage due to leveling off of sales and the oligopoly make up of the market.
- What are the Foster Curve effects of Jim’s business?
The new technology is starting to affect Jim’s business due to a leveling of sales. If, sales start to fall Jim is in trouble with his market. The new laser technology will replace his existing products over time.
- What should Jim do about the new competitor?
Jim should what his market share and sales very closely for the next few sales periods. If, his sales start to fall he should adopt the laser technology in his business. Given the existing situation, he should explore combining the use of the new technology with his traditional products.
- Should Jim move into the new technology and divest his current products?
Not at this point, he should wait and study the adoption process of the new products and maintain his existing lines as Cash Cows. If his sales slow even a small amount, he should move into the new products while maintaining his existing lines.
- What other factors should he consider? What is his Porter Strategy?
He should study the experience curve to evaluate where the competitors are in costs compared to his potential investment. If, the new competitors have a major cost advantage he may want to form a partnership or buy out a competitor to gain the advantage of the new technology.
His current Porter strategy is Differentiation. He may want to continue this strategy with the new technology if he is behind on the Experience curve.
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Answer Preview
Most consumers think that the product it normally the physical items that they purchase they have no idea that there is a whole cycle that the products normally go through. A product normally has four stages from introduction, growth, maturity and decline. Jim already went through the introduction phase successfully, he was able to introduce the levels…
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