A competitive high-tech market
You are recently appointed to the new executive team composed of a Chief Production Officer, Chief Fiancial Officer and Chief Marketing Offcier. As a new executive trio, your mission is to grow your business.
Your company manufactures and sells AMD and Intel computers. For each year, you must choose the number of AMD or Intel chips you want to purchase. Each chip makes it possible to manufacture and thus sell a computer. You can also decide if you want to advertise your AMD and/or Intel computers. Keep in mind that Intel has a partnership program where they cover 50% of the advertising costs. Intel demands to have a jingle “Intel Inside” for multimedia-based ads, as well as having a brochure in every new computer box bought by a customer.
Since your company and your competitors are not listed on the stock exchange, it is impossible to know the strategy of other companies. Be careful not to have a negative cash flow at the end of the year, this leads to bankruptcy and layoffs by the board.
Will you opt for a risky strategy in order to obtain the maximum market share at the risk of losing everything or will you be careful to keep your business going?