Peak Sealing Technologies (PST), a developer of superior carton sealing tapes, emphasizes technological innovation as the organization's core value.However. when a less expensive and inferior merchandise is launched by a new regional competition, PST is confronted with a choice which could contradict with their values.
Product supervisor Emma Taylor must decide whether the company should augment its existing high quality product line with a cheaper, less effective product to compete with their adversary. However, this selection could cannibalize PST's superior line. Emma is faced with a crucial dilemma in product line management--pinpointing the variety of products in the line that serve the same function.
This case could be effectively used in first-year MBA course on marketing management to give detail of concepts associated with the danger and strategy of introducing a product line extension. In addition, it permits a more complex analysis that will be appropriate in an Executive MBA program or advanced MBA elective courses in Product Management, Business to New Product Development, Sales Management or Business Marketing.
PUBLICATION DATE: January 28, 2014 PRODUCT #: 914533-PDF-ENG
This is just an excerpt. This case is about SALES & MARKETING
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