Case 1 Discussion - Response

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It is recommended that CM launch its Command Product line, as it provides low risk and a high

NPV, but do so with a staggered launch. CM should focus on the Canadian market using the
Cambridge location and rely on the pre-established connections with Chinese suppliers for parts.
Using on-the-ground personnel and effective intellectual property protection measures can
ensure the importation of quality products, which aids in maintaining CM’s well-established and
respected reputation. This allows CM to draw from resources they already have to cut down on
production costs. Rollout in the Canadian market will reduce risk and foreign tax implications
thus allowing the company to establish the product line successfully before growing too large too
quickly. Once CM launches in the Canadian market and can better judge the success of the
Command Product Line and adjust for any challenges, they can begin to prepare for the US
launch.
Overall, shifting from a B2B to a B2C business model will allow CM to gain a competitive
advantage and although it comes with a lower profit margin, an increase in sales volume is
expected. Additionally, CM should communicate its benefits to customers by focusing on
affordability, versatility, compatibility with multiple manufacturers, quick delivery and robust
customer support.

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