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    PST

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    rocky30
    Peak Sealing Technologies faces a dilemma on whether to develop an economy product line to compete with lower-cost competitors or maintain their focus on premium products. They have a large and successful product line but sales of their lower-end K2 tape have decreased as competitors have introduced cheaper alternatives without infringing on PST's patents. Developing an economy product could cannibalize sales of existing lower-grade tapes but would allow PST to better compete, though it is unclear if that is aligned with their mission of quality products. An alternative is acquiring a company that produces economy tapes to avoid developing one themselves.

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    PST

    Uploaded by

    rocky30
    169 views4 pages
    Peak Sealing Technologies faces a dilemma on whether to develop an economy product line to compete with lower-cost competitors or maintain their focus on premium products. They have a large and successful product line but sales of their lower-end K2 tape have decreased as competitors have introduced cheaper alternatives without infringing on PST's patents. Developing an economy product could cannibalize sales of existing lower-grade tapes but would allow PST to better compete, though it is unclear if that is aligned with their mission of quality products. An alternative is acquiring a company that produces economy tapes to avoid developing one themselves.

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    Pst

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    Peak Sealing Technologies faces a dilemma on whether to develop an economy product line to compete with lower-cost competitors or maintain their focus on premium products. They have a large and successful product line but sales of their lower-end K2 tape have decreased as competitors have introduced cheaper alternatives without infringing on PST's patents. Developing an economy product could cannibalize sales of existing lower-grade tapes but would allow PST to better compete, though it is unclear if that is aligned with their mission of quality products. An alternative is acquiring a company that produces economy tapes to avoid developing one themselves.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    169 views4 pages

    PST

    Uploaded by

    rocky30
    Peak Sealing Technologies faces a dilemma on whether to develop an economy product line to compete with lower-cost competitors or maintain their focus on premium products. They have a large and successful product line but sales of their lower-end K2 tape have decreased as competitors have introduced cheaper alternatives without infringing on PST's patents. Developing an economy product could cannibalize sales of existing lower-grade tapes but would allow PST to better compete, though it is unclear if that is aligned with their mission of quality products. An alternative is acquiring a company that produces economy tapes to avoid developing one themselves.

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    © All Rights Reserved
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    You are on page 1of 4

    In a Bind: Peak Sealing

    Technologies Line
    Extension Dilemma

    Situation Analysis

    Peak Sealing Technologies (PST) has a lengthy


    product line having 9 products in its K2-carton
    sealing tape

    Threat of new entrants is very high as competitors


    managed to come up with an economy product
    without infringing the patents of PST

    Post the 2009 acquisition their sales force


    increased to 40 personnel but the time devoted by
    them to K2 tape is less.

    In a price sensitive area like Boston, their quality is

    Situation Analysis

    Dilemma faced by the company whether to offer


    an economy product or stick to their forte of
    premium grades

    If they enter the economy segment will the new


    product cannibalize the existing low grade product

    Given their EBT of $35 M, should they acquire the


    roughly $6-$8 M Tensile company and not be
    worried about developing an economy product

    Economy product would be an anti-thesis to their


    mission statement of providing customers with

    Thank You!

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