John Cleaver is the CEO of Tech World, which is a retail store that sells computers, monitors, cameras, televisions, and many other electronic products.John and his executive team are meeting to brainstorm new ideas on how to grow the business.One idea is to mimic a competitor's product that is attempting to sell a new product in a different industry.After performing a Porter's Five Forces analysis, John determines that all of the forces are high in this new industry.What should John do?
A)Explode into the market with an overflow of the product.
B)Contemplate other products to introduce at the same time in this new market.
C)Compare the competitor's prices and offer his product lower in this new market.
D)Not introduce the product because all five forces are strong and this would be a highly risky business strategy.

Question

Quizplus · Accepted Answer

Introducing a new product in a highly competitive industry where all the Porter's Five Forces are high is a highly risky business strategy. John should not go ahead with the idea of mimicking the competitor's product and introducing it in the new industry. It is best to focus on other products that the company can introduce in the market.

John Cleaver Is the CEO of Tech World, Which Is