In order to mitigate the risk described, what should both partners have considered before investing in the product?

In the 1990s, a manufacturer of portable music players partnered with a mini-disk producer. The aim of the partnership was to reduce the size and cost of the devices and enhance flexibility. Sales of the product after launch were low due to a competitive launch of small digital players, which offered better flexibility to customers at a comparable price. The partners suffered substantial loss and never recovered the investment.

In order to mitigate the risk described, what should both partners have considered before investing in the product? Select the TWO that apply.
A . Fast charging markers
B . Customer price expectation
C . New substitute technology
D . Cost of investment
E . Legal implication of partnering

View Answer

Answer: B, C

Explanation:

Understanding customer price expectations and the potential for substitute technology are critical in product development to anticipate market trends and competitive threats, aligning with risk management principles.