PLM's managers are attempting to build a new product, a better mousetrap. They began by determining the features customers wanted and what they would pay for those features. PLM's engineers then reverse-engineered a competitor's product to understand its design and related production processes. Their analysis indicated that customers would pay $10.00 for a better mousetrap. Why was it important for PLM's engineers to understand the product design and production processes of its competitor?
A) They needed to explain them to customers to justify the better mousetrap's cost
B) The better mousetrap will only succeed if it is identical to their competitor's product
C) Most of the mousetrap's product costs are committed by that point in the value chain
D) Understanding product design and production processes is not typically important; the engineers just wanted to better understand the process.

Question

Quizplus · Accepted Answer

Understanding the product design and production processes of a competitor can help in identifying where costs are incurred and how they can be managed or reduced. This knowledge is crucial because a significant portion of a product's costs are determined during the design and production planning stages. By analyzing these aspects, PLM's engineers can make informed decisions to ensure their mousetrap can be produced at a cost that allows them to sell it at the desired price point of $10.00 while maintaining profitability.

PLM's Managers Are Attempting to Build a New Product, a Better