Case Study : The Racquetball Racket
What do we know about the problem ?
Only single competitor for balls
Woodrow Ltd., dominating the market
The new balls are less durable
Agree/
define 1 2 3
objectives
Determine how Figure out whether Analyze the risks
new balls will be manufacturing involved
priced plant is sound
investment
• Initial capital
• Variable costs : 0.52$ per ball
( includes production , marketing ,
distribution)
• Plant and equipment and overheads
What are the key variables?
• Information and concept test
• Trade association projections
What can we
assume or Data
gain more We do not
available till
1998. Need
information? know about
fixed cost.
to know
current
trends
What could the results look like?
Thank You !