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PRISM COMPUTER CORPORATION NEW RELEASE

The Launch of the New Low-cost Laser Printer

CLEVELAND, November 1, 2011. Prism Computer Corporation plans to launch a laser jet printer. The laser jet printer is said to be cost efficient and effective in its performance as compared to other common laser jet printers. Its features are slightly advanced than other laser jet printers and it is said that it is cheaper. The top management of Prism Computer Corporation during their board meeting gave some information regarding the release of a laser printer that they developed. The laser jet printer has a monthly duty cycle of up to two hundred and fifty thousand pages plus the best of both black and colored jets. In addition, it has up to six paper trays with an energy star. It also has Gigabit networking feature and a broader security feature.

The laser printer to be released is proven quite efficient and effective in its stipulated duties specified that are similar to other laser printers. As mentioned, this is a product to look forward for in making business ventures a striking boost to an individuals business.

Essay

In my opinion, this may be a good management strategy but it may pose a risk. The advantages of performing such a course of action vary to a wide extent including re-assuring the current customers of a newer and better option or rather upgrade that is even more cost-effective. This in turn boosts customer confidence all over because they will realize that their needs are being met and be more devoted to the company as they anticipate for the new product. Another advantage of embarking on such a course of action will be capturing media’s interest since they are a fundamental aspect of a company’s performance. The investors and shareholders of the company will also be impressed by such advancements and this will consequently open up more avenues for attainment of the company’s future objectives. Probably the biggest advantage of the pre-announcement will be the confusion by competitors that will arise since they will feel intimidated and infer orated.

Pre-announcement of the product may also result to dire consequences for the company. Customers in this case might react responsively because they are aware that the new product is better and the current one will soon be phased out. Orders for the current product therefore decrease forcing the company to discount the product due to increased inventories. This consequently affects the cash flow and may even lead to total bankruptcy of the company. This effect has since been referred to as the Osborne effect.

If Prism Computer Corporation fails to produce the products, it will cause customer dissatisfaction especially for those who had placed orders. This will cause them to shift to the competitor who by this time will have realized what is going on and produced a new product or upgraded one of theirs. This situation violates professional ethics to a wide extent. It actually is considered illegal according to the Sherman Antitrust Act of 1890 since it hurts the competitors by placing them as vaporware victims (Haan, 2003). Those affected most will be the consumers who will have to wait for the products to get to their hands and the media will precipitate the situation by tarnishing the image and name of the company. It is also the responsibility of any company to ensure customer satisfaction and any acts contrary to this will count as unprofessional and as violating the code of ethics. I would therefore try to convince the management that it is better placed if they became transparent to their consumers since it will generate the much-needed anticipation and give them enough time to phase out the existing product at the same time maintaining their cash flow.

 

 

References

Haan, A. (2003). Vaporware as a Means of Entry Deterrence. The Journal of Industrial Economics, 51 (3): 345–358.

 

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