BBM Corporation'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. BBM'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 BBM's engineers to understand the product design and production processes of its competitor?
A) Most of the mousetrap's product costs are committed by that point in the value chain
B) They needed to explain them to customers to justify the better mousetrap's cost
C) The better mousetrap will only succeed if it is identical to their competitor's product
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 the competitor is important because most of the mousetrap's product costs are committed by that point in the value chain. This knowledge can help BBM Corporation's engineers identify areas where they can reduce costs while still delivering the desired features and quality to customers.

BBM Corporation's Managers Are Attempting to Build a New Product