If the company does not take this step, to improve its product line and offer a better future option the company is likely to lose significantly more than the internal offset erosion of the existing brands. In fact the cash-flow question would only be an issue if another company were about to produce a product that would erode current sales of traditional products. Without the development of new products and the utilization of surplus production space the company is not only likely to lose but sure to lose market share in the niche they produce products for. Though the case study does not make clear that an outside threat exists it can be assumed that if this company has gone into full development of a new product that better meets the needs of consumers any other industry company could and would likely erode sales of existing products.

The fact that...
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