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Assume that you have recently joined a firm that makes high-quality waterproof action cameras; these were originally designed to appeal to consumers participating in extreme and not-so extreme sports and recreational activities. These cameras are now used by consumers worldwide and have become popular for filming extreme sports and recreation, and even sports analysis because they offer remarkable ease of operation and durability, and may be fixed to a user or object, for instant capture of motion with high resolution. The firm divides its resources between production of cameras for both personal and professional use. In reviewing product pricing, you note that existing prices of all products sold by this company are substantially below pricing of products commonly used by professionals, however this camera maker's products offer quality similar to that of established brands commonly used by professionals. Higher-end models within your product line incorporate functions suited to personal users, such as WiFi for instant upload to the internet, that are equally attractive to professional users, and no constraints on production or supply exist that might allow production for one variety of user to be more costly.
DISCUSSION PROMPT
As manager of the product development division of this firm, you have been asked to evaluate existing product lines. Using Porter's five categories or "forces" that impact the sustainability of industry profits and your own knowledge of this industry, explain which type of user might provide optimal benefit to the company, and briefly describe facts which justify your recommended allocation or re-allocation of productive resources toward personal and/or professional users. If additional topics covered in this chapter are relevant to these issues, these should be included in your presentation. Assume that you will present your findings to your firm's board of directors, whom you know to have only limited familiarity with economic concepts and principles. You will, therefore, need to be creative in your presentation.
Responses should comprise 200-400 words.
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