Resotech Inc.

Resotech Inc. Time is a critical strategical challenge. For example, move into you atomic number 18 a customer being interested in a particular crossing. This product is very expensive and long lasting. Its readiness is more than you need. Once youve bought it, you can use it for decades. Even product improvements and virgin versions would unaccompanied r arly make you buying a new one, just because theyre incredible expensive. A secondary market to lot the product might exist, but anyway youd have to sell it at a discount collectible to technology improvements.The main question for you as a consumer is the following How many products do you buy? The answer is sincere One. What does that pissed for companies offering solely such(prenominal) a product? If a customer buys a particular product only once and girdle with it, only one community can serve this customer. The company, that first sells to him or her, wins. The competitors have no chance to convince the customer t o switch or to buy the next time from them, since there is no next time. This reveals our strategic challenge Time. If a company is the first launching a product, it has a first-mover-advantage.If a company is second, a part of the market is already served, hence, the center demand and the maximum revenues decreased. How can companies be successful in such an environment? Theres only one way Be the first Either because theres no follower (youre a monopolist), or because you launch the product earlier than your competitors do. This implies for any company that whatever it does, it must ensure that the product is launched before the competitors launch their products (staying proscribed of the market is no option since its the companys only product).This brings us to the question of avail adapted resources. How many resources you have to invest to be the first mainly depends on how many resources your competitors are investing. Moreover, if they suddenly increase their investments s ubmiting to outpace you, you should be able to react. What does that mean for Resotech Inc.? The company is known for its amazing quality. The products are of superior technology and get from a Rolls-Royce image. This implies that a lot of time must be pass on R&D for developing a mobile scanner of such a quality.Delivery delays are possible, or even probable, as it were the cocktail dress for the RS-1000. Moreover, the evolution might also lead to a delay of the RS-2000 due to limited R&D resources. And what if the competitors enter the market as hearty? One can argue that Resotech might be able to discourage other companies to enter the mobile market once they committed themselves. However, this is improbable for two reasons First, Resotech is a relatively small company. Larger companies such as GE, Siemens, and Picker will probably have a shorter product development cycles due to their huge financial reserves and experience.Second, Resotech aims for high quality products. Competitors are able to produce less advanced scanners and enter the market first. In contrast, this is no option for Resotech. Moreover, Resotech would have to acquire new personnel first. To summarize, Resotech could sell 25 units. However, theres a risk that Resotech is not able to stick to its delivery schedule, since the development of a mobile product is not a piece of cake. This may result in penalties. Additionally, if we try to stick to the schedule with a less advanced product, we will misemploy our image as quality leader.Moreover, what if 25 units are not plentiful to break even and another competitor has already entered the market? If Resotech accepts the offer, it wont have any spare resources to accelerate R&D to outpace potential entrants. On top of that, we put the RS-2000 at a risk of being launched too late, since we might face a dearth of R&D capacity for both products. Therefore, from a time show up of view, I recommend to decline the offer. Thereby we can focus on the RS-2000 and launch it earlier. Declining would be less risky, but maybe less profitable. Its the safe way.