Resotech Inc.

Resotech Inc. Time is a critical strategic challenge. For example, assume you are a client being interested in a particular product. This product is very expensive and long lasting. Its power is more than you need. Once youve bought it, you dismiss use it for decades. Even product improvements and new versions would only rarely own you profaneing a new one, simply because theyre incredible expensive. A secondary market to bewray the product expertness exist, but whatsoeverway youd have to sell it at a usher out due to technology improvements.The main question for you as a consumer is the following How many products do you buy? The answer is simple One. What does that mean for companies offering solely such a product? If a customer buys a particular product only once and stays with it, only one political party female genital organ serve this customer. The company, that first sells to him or her, wins. The competitors have no chance to convince the customer to switch or to buy the next time from them, since there is no next time. This reveals our strategic challenge Time. If a company is the first launching a product, it has a first-mover-advantage.If a company is second, a part of the market is already served, hence, the total demand and the maximum r purgeues decreased. How can companies be successful in such an environment? in that locations only one way Be the first Either because theres no follower (youre a monopolist), or because you launch the product earlier than your competitors do. This implies for any company that any(prenominal) it does, it must ensure that the product is launched before the competitors launch their products (staying out of the market is no option since its the companys only product).This brings us to the question of available resources. How many resources you have to invest to be the first mainly depends on how many resources your competitors are investing. Moreover, if they suddenly increase their investments try to o utpace you, you should be able to react. What does that mean for Resotech Inc.? The company is known for its amazing tone. The products are of superior technology and benefit from a Rolls-Royce image. This implies that a lot of time must be spent on R&D for developing a mobile scanner of such a quality.Delivery delays are possible, or even probable, as it were the case for the RS-1000. Moreover, the development might also lead to a delay of the RS-2000 due to express mail R&D resources. And what if the competitors enter the market as well? One can argue that Resotech might be able to discourage other companies to enter the mobile market once they committed themselves. However, this is tall(a) for two reasons First, Resotech is a relatively small company. Larger companies such as GE, Siemens, and Picker will in all likelihood have a shorter product development cycles due to their huge financial reserves and experience.Second, Resotech aims for high quality products. Competitors a re able to produce little advanced scanners and enter the market first. In contrast, this is no option for Resotech. Moreover, Resotech would have to acquire new personnel first. To summarize, Resotech could sell 25 units. However, theres a fortune that Resotech is not able to stick to its delivery schedule, since the development of a mobile product is not a piece of cake. This may result in penalties. Additionally, if we try to stick to the schedule with a less advanced product, we will damage our image as quality leader.Moreover, what if 25 units are not sufficient to break even and another competitor has already entered the market? If Resotech accepts the offer, it wont have any spare resources to accelerate R&D to outpace potential entrants. On top of that, we put the RS-2000 at a risk of being launched too late, since we might face a shortage of R&D capacity for both products. Therefore, from a time point of view, I recommend to decline the offer. Thereby we can focus on the RS-2000 and launch it earlier. Declining would be less risky, but maybe less profitable. Its the right way.