Apex Case Study

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Apex Case Study The development of new products is fundamental to the future success of most firms. New product development is both a strategic means of diversification and maintenance of the company’s share of the market (Annacchino 7). There are factors that might prevent a company from making an educated guess on the new product launch in the market, given competing interests. These factors include competition, risks, and others (Loch and Stylianos 49). Allowing gut feelings in making a decision might put the future of a company at unnecessary risks. Apex is facing a dilemma on the appropriate product to launch given their relative merits and demerits on the market. The problem is compounded by a lack of analytical information that would have otherwise enhanced the decision-making process on the choice of the two products. However, before one makes a decision on the product that would assist the company is striking it big, it would be important to summarize the important facts that are hand, which would be important in tossing a coin to the right side. The company has an average annual sale of $60 million, and it is expected that the two products would gross the same margin percentage. This implies that the two products are competing on an equal footing, with none having an undue advantage from the outset. Apex is confident of the ability of compound A-115, which faces a stable market of $10 million, and could be a bargain considering its technical superiority compared to the substitute in the market. The substitute produced by a rival firm has its roots firmly entrenched on to the market, and it would be a real risk staking away Hamfield’s satisfied customers,

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