Falco Scooters (A) 2012

Falco Scooters (A) 2012 - Falco Scooters(A Written by...

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Falco Scooters (A) Written by Professor Igor Vaysman
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1 The Falco Group is a holding company with majority ownership of numerous business-to-business and business-to- consumer firms. The company’s flagship cons umer holding is the wholly-owned Falco Scooter Company . It currently offers two models: the City-100 and the Super-300 . The City-100 model has a maximum speed of 50 mph; consequently, it is not allowed on most expressways. The higher-end Super-300 uses a larger engine and enhanced safety systems; with its maximum speed of 79 mph, it is approved for expressway riding in many areas. The market for the City-100 is highly competitive many competitors offer essentially identical scooters; the current prevailing market price is $660. At this price, Falco can sell any number of City-100 ’s (our current annual estimate is 5,000 6,000 unit sales). The market for the Super-300 model is an oligopoly; Falco expects to sell 1,000 Super-300 ’s per year at the current price of $3,000. Falco Scooters has a single state-of-the-art assembly facility, where both scooter models are assembled from parts purchased from a few well-chosen suppliers. One of the key strategies of the Falco Group is to strive to maximize capacity utilization.
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