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Your firm manufactures sugar-free candies for diabetics. As one way to boost revenue and improve cash flow, a financial advisor has suggested entering the market for regular sugar-based candies. It's your responsibility to decide if this move makes sense for the company. So you consider these facts: Your sales team is extremely knowledgeable about the needs of diabetic customers and the retailers who cater to them, but has no experience with regular candy buyers or retailers. Your factory is already operating at maximum capacity. Adding this product line would require big new purchases of sugar and other supplies at a time when your cash flow is limited.
Based on these facts, which of the following decisions is correct?
a. Do not enter the new market because it has more competition than the sugar-free market.
b. Enter the new market because growth opportunities are limited in the sugar-free market.
c. Do not enter the new market because your company lacks the resources, expertise, and facilities to compete effectively.
d. Do not enter the new market because consumers are reducing their consumption of sugar-based candy.
e. Enter the new market because it is the only way to boost revenue and improve cash flow.
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