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Question:
Speedy Computer Inc. (SCI) is going to introduce its first laptop computer. Although SCI recognizes that it is a late entry into the market, it believes that there is room for an inexpensive product at the low end of the market. Its design process will start with a conceptual design performed concurrently with the disassembly and analysis of a select group of the competitor''s products. The best components consistent with the conceptual design will then be used as the basis for the working design.
A prototype will then be developed, with a focus on using components that are readily available in the marketplace. The prototype will be tested for technical performance and ease of use, and a cost estimate will be prepared to determine whether the product could be profitably manufactured.
If the prototype shows promise, work will begin on a marketing program and operations services, which include the development of user manuals and service programs.
Manufacturing will be performed by subcontractors to the greatest extent possible to reduce risk. Final assembly and testing will be performed at SCI''s existing facilities.
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