Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Management Theories Expert

Two manufacturers currently are competing for sales in two different but equally profitable product lines. In both cases the sales volume for manufacturer 2 is three times as large as that for manufacturer 1. Because of a recent technological breakthrough, both manufacturers will be making a major improvement in both products. However, they are uncertain as to what development and marketing strategy to follow.

If both product improvements are developed simultaneously, either manufacturer can have them ready for sale in 12 months. Another alternative is to have a "crash program" to develop only one product first to try to get it marketed ahead of the competition.

By doing this, manufacturer 2 could have one product ready for sale in 9 months, whereas manufacturer 1 would require 10 months (because of previous commitments for its production facilities).

For either manufacturer, the second product could then be ready for sale in an additional 9 months.

For either product line, if both manufacturers market their improved models simultaneously, it is estimated that manufacturer 1 would increase its share of the total future sales of this product by 8 percent of the total (from 25 to 33 percent). Similarly, manufacturer1 would increase its share by 20, 30, and 40 percent of the total if it marketed the product sooner than manufacturer 2 by 2, 6, and 8 months, respectively. On the other hand, manufacturer 1 would lose 4, 10, 12, and 14 percent of the total if manufacturer 2 marketed it sooner by 1, 3, 7, and 10 months, respectively.

Formulate this problem as a two-person, zero-sum game, and then determine which strategy the respective manufacturers should use according to the minimax criterion.

Management Theories, Management Studies

  • Category:- Management Theories
  • Reference No.:- M92220508

Have any Question?


Related Questions in Management Theories

In-depth evaluation of a retailers sustainability impacts

In-Depth Evaluation of a Retailer's Sustainability Impacts and Policies/Initiatives Coursework requirement This coursework requires that you prepare a report based on an in-depth evaluation of the sustainability impacts ...

The following are amounts of time minutes spent on hygiene

The following are amounts of time (minutes) spent on hygiene and grooming in the morning by survey respondents (based on data from an SCA survey). 15, 16, 18, 25, 26, 30, 32, 41, 45, 55, 63. Does the number 63 appear unu ...

Describe how government-supported big business during the

Describe how government-supported big business during the Reagan Era effected the U.S. economy and labor unions.

A survey of us adults found that 69 of those who text on

A survey of U.S. adults found that 69% of those who text on cell phones receive spam or unwanted messages. You randomly select 100 U.S. adults who text on cell phones. A) Determine whether you can use a normal distributi ...

Discussion assignment - discuss the following statementif

Discussion Assignment - Discuss the following statement: If management gets a union, it deserves one. Take a position for or against the statement and support your argument with both your research into the subject (refer ...

Questionthere are several types of networks while the

Question: There are several types of networks; while the concepts are the same, only the names of the elements change. A network is a set of nodes connected by links, for example. However, some of the academic literature ...

Suppose a machine has two components that prevent injury

Suppose a machine has two components that prevent injury; component A and component B. If either of the components fail, an employee will be injured.  It is important to note that both A and B cannot fail at the same tim ...

Assignment -instructions - please follow instructions for

Assignment - Instructions - Please follow instructions for all for Personal Learning Journal. And each personal learning journal should be of 300words. Each student will keep a personal journal to reflect and record thei ...

Discussion assignment -the overall design and costs of an

Discussion Assignment - The overall design and costs of an organization's benefits plans are an important part of their people strategy for attracting and retaining a talented workforce. For example, health care costs ar ...

Assume that a salesman learned the price elasticity of

Assume that a salesman learned the price elasticity of demand for his products is -2.0. How many percent will increase in the total sales (revenue) if he cuts the price by 10%? Show your calculation process?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As