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Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1351 |
Essay's paper body
The product seems to be capable of generating a recurring revenue stream. There do not seem to be any barriers. Once CMI becomes the first and therefore, preferred provider of these pads, there is little reason for a customer to switch to a competitor.
Growth
As shown above, the pile-driving industry is large and the logical marketing territory surrounding CMI may be limited due to the fact that CMI’s history was in the automobile industry...
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However, since CMI’s product is unique, the market space is wide open if the product is marketed properly.
Pricing Strategy
CMI should set their pricing objective of this new product to control most of the pile-driving market. However, a good first step would be for CMI to apply for a patent. Although it would take some time to gain patent statues, it is a good idea to get the ball rolling...
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General points of the essay
Marginal utility theory, product differentiation, and revenue/profit maximization
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