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Case Study 2: Change in Product Portfolio
You are a sales person in an electronics company. At a recent trade exhibition you met a supplier
that was willing to supply your company with a product on an exclusive basis (i.e. available to
your company only) that you could offer in your market-place. The product in question has
already been successfully developed and tested and -as yet - is not being sold on the market.
You know from speaking to your customers that there is demand for such a product and it would
clearly plug a gap in your company's product portfolio, and give your company significant
competitive advantage.
You approach the product management division with your idea and, to your surprise, they are
very unenthusiastic and reject your idea, stating "We always develop our own products in-house
in this department - it would cost the company far too much to set up the processes to buy in a
product from outside"
Required:
(a) Outline the possible range of reasons for the product management division's rejection of
your idea
(b) What might you do or argue to persuade or otherwise ensure that your idea is adopted?
State which of your options in (b) would be your preferred approach, and why?