Q: 8
[The dynamics of supply chains]
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.
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