In a Bind: Peak Sealing Technologies’ Product Line Extension Dilemma Case Solution & Answer

This Case is about  COMPETITION, DISRUPTIVE INNOVATION, MARKETING, PRODUCT DEVELOPMENT

PUBLICATION DATE: January 28, 2014 PRODUCT #: 914533-PDF-ENG

A maker of superior carton sealing tapes, Peak Sealing Technologies (PST), stresses technological innovation as the organization’s core value. But when a new regional competition introduces a merchandise that was less expensive and inferior, PST is confronted with a choice which could conflict with their worth. Merchandise supervisor Emma Taylor must determine whether the business should augment its present high quality product line with a more economical, less powerful product to compete with their competition. But this choice could cannibalize the superior line of PST.

Emma is confronted with a crucial problem in product line direction–establishing the variety of products in the line that serve the exact same function. This case could be utilized efficiently in a first year MBA class on marketing management to exemplify theories related to strategy and the hazard of introducing a product line expansion.

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