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"Sun perhaps is downplaying the product transition," Mr. Dorsten said, adding that problems related to a product transition were not caused by macroeconomics but rather by factors within Sun. "At its core," he said, "this is an execution issue".
"How is it that their sales of high-end product dry up when they're in product transition while Sun's accelerate?" said Daniel Kunstler, an analyst with J. P. Morgan.
There was intense discussion of the significance of a statement made by Peter Oppenheimer, the chief financial officer, that Apple was planning a "product transition" that would lower its gross margins by three to four percentage points during the next year.
The company is in the midst of product transition as sales of its new, as yet unprofitable, Xbox video game console are increasing rapidly, while new versions of its most lucrative products like Windows and Office will not arrive until next year.
In this paper, we propose a fuzzy-based decision-making method to effectively evaluate products to be discontinued at the product transition point after taking into account market uncertainties and characteristics of businesses in companies.
"This is a classic product transition.
Similar(32)
The Art of Managing New Product Transitions.
And you're vulnerable to product transitions, when you can get stuck with obsolete inventory.
They take a closer look at country risk, like changes in government policies; individual company risk, like major product transitions; and currency risk.
To explain the product transitions and branding decisions to customers, she said, "we think we need to spend as much as the two companies have been spending to date".
These were not just product transitions, but radical business model transitions — new channels, new customers and new markets — and new emphasis on different parts of the organization (design became more important than the hardware itself and new executives became more important than the current ones).
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