Michelin have developed an "airless, intgrated tyre and wheel"(think a wheel without a tire, like a kind of small metal wagon wheel) that creates wheels far more durable than ever before and can be fitted to wheelchairs, Segues and eventually passenger cars.
So this kind of new product is quite new, there is no competitors. The U.S.P. is also clear and obvious. But while they solving one problem, it may bring other problems. Is it save when car drive very fast or drive on snow? When cars suddenly turn around what will happen? So if they can make sure these things are OK, I think it will be a really good product. And also the price is important as well. With the technology, maybe the price is very high, so reduce the cost is also necessary.
If all these problems are solved, it definitely will be a nice product which have a big macket.
Diseconomies of scale
7 years ago
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I am trying to teach you to EVALUATE as that is the key to a grade A for Business Studies!
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