The case study is about Altius Golf. Altius Golf may be the clear leader in the baseball market despite the fact that there has been a decline in the amount of golfers and a drop in sales following a financial meltdown. Altius Golf still maintained its good position in the market by introducing generations of higher level, top quality tennis balls that allow their clients to copy professional golf players. The business suffered a loss because of competition who had been cutting the prices down and the Chief Executive Officer really wants to introduce a fresh program called Elevate to foster another generation of golfers.
With the introduction of Elevate, Altium Golf will introduce a ball that’s smoother and better to drive for long distances and provide it at a cost 40% below the business’s flagship product. Elevate will undoubtedly be available through “off the course” channels such as for example golf specialty stores and big box retailers rather than “on the course” professional shops where in fact Altius Golf sells its products and services.
The board of directors is divided on whether to go with this decision or against it. Quantitative analysis of the CEO’s proposal may be performed to comprehend the potential risks and gains prior to making the final recommendation. The whole dilemma ultimately takes the form of a great learning exercise.
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