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Research
1. It introduces a new product line for sale in the U.S. to a market segment that has not
been reachable because of the price of the product with lower prices.
2. it is a big morale booster to in-country engineers to see the product they developed now
being bought in advanced developed countries.
Possible Risks
1. The major risk is that the lower price product might cannibalize sales of higher priced
products with higher profit margins.
2. a low price product line might carry a stigma of shoddy workmanship and jeopardize the
brand name of the product.
Will the customers really be satisfied with a smaller range of functions in the product?
How the new product is advertised and marketed will be critical to the protection of the
brand?.