summary 4 - Caitlin Vodopia 9/27/2010 Investment in...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Caitlin Vodopia 9/27/2010 Investment in Changeover Flexibility for Early Entry in High Tech Markets A firm determines early on whether it wants to be competitive on price or flexibility, and this plays into how they are going to invest in their manufacturing capabilities. When choosing a manufacturing strategy, companies need to be aware of short product life cycles and/or intense pricing competitions, and choose strategies with those factors in mind. Early market entry is important in high tech industries because the early entrant can reap first pioneer benefits such as higher market share or being able to charge premium prices. It is also beneficial to be early entrant when product life cycles are short, as to maximize the potential profitability before the next generation product becomes available. Single facilities dedicated to long production runs in one product can result in lengthy changeover times which risk not being an early entrant into the market. Also, due to short product life cycles, it may not be possible to reap the
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

summary 4 - Caitlin Vodopia 9/27/2010 Investment in...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online