Based on the scenario with Max Games, answer the following questions based on what your decisions are and why you made that decision.

What is the first step you will take in developing your strategy?

Your Solution:

Having gathered the necessary market research data, you have found that your product is not very different than competitive products and priced about the same. But you also found that none of the products on the market (including your own), has the capabilities of a digital camcorder. Would it be better to lower the price of your current product to target a larger demographic, develop and engineer a new product with camcorder capabilities, or modify your existing product with camcorder components from the secondary market?

Your Solution:

Now that you have a strategy, you are now faced with the challenge of justifying your decision with a cost benefit analysis. What key aspects will you include in your cost benefit analysis to convince the CEO to adopt your plan?