Peak Sealing Technology Case Study Essay

718 Words Dec 23rd, 2014 3 Pages
Management of Innovation, Technology and Entrepreneurship
Sopar Matoga M – 29113409 – BLEMBA 15
Case Analysis Peak Sealing Technologies’ Product Line Dilemma

Guiding Question: 1. What is the company’s values at PST and analyze the pro and cons of introducing an economy tape
* Values: * K-2 tapes line provide leading performance in durability, materials, holding force, temperature resistance level and extreme utilization condition. * Despite the premium pricing, K-2 product provide more competitive overall cost trough superior performance. * K-2 sales force are the best trained and knowledgeable in the industry, K-2 sales force also provide sales and technical assistance include performing cost effectiveness
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Should PST launched low quality or economic segment tape while inevitably it will lowering its brand positioning but in the other hand it has to maintain their market share and their premium position from the attack of low-price competitor in a competitive and price sensitive area.
* Positioning Recommendation on Decision:
Once PST shift their positioning by providing the market with lower quality at lower price, the market then will perceive PST as equal to other brand and will eventually lost its competitive advantage in premium quality brand. Thus considering the cost and benefit, pros and cons of launching economy tape, I recommended for PST not to introduce economy tape lines due to the cons of launching cheaper product will eventually create more damage instead of profitability.

2. Propose programs for either selection: when PST introduces the economy tape and when PST doesn’t.
* What programs initiatives should be done if PST decided to launch its economy tape line

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