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Business Strategy Assignment

Session 2A: Performance Indicator

03.29.2016

1. Does the Performance Indicator technology increase the value that can be created in the used golf ball market? (In other words, does it increase the customer benefits, decrease the production cost, or increase the quantity sold of used golf balls?)

No, I don’t think the Performance Indicator technology can increase the value that can be created in the used golf ball market. When the customers realize that used golf balls’ performance would be decreased by the appearance of Performance Indicator technology, customer benefit will thus be decreased. As a result of this, the used golf balls quantity sold will be decreased at the same time. So the Performance Indicator technology will decrease the value that can be created in the used golf ball market.

2. Does the Performance Indicator technology increase the value that can be created in the new golf ball market? (In other words, does it increase the customer benefits, decrease the production cost, or increase the quantity sold of new golf balls?)

Yes, the performance indicator technology can increase the value in the new golf ball market. The total number of quantity sold of new golf balls will absolutely increase as a result of incorporating the new technology, despite the slight increase in manufacturing costs for the same reason. The customer benefits will increase since the new technology brings better performance level in new golf balls.

3. Keeping in mind your answers to questions #1 and #2, why do you think Robb and Bob are having such a hard time getting any of the new ball manufacturers to license the Performance Indicator technology? (Note that there are different possible answers here. You may think that the PI technology does not increase the value that can be created in golf balls; that would explain why Robb and Bob can’t capture any value from the technology. You may think that the PI technology does...