MARKETING STRATEGY ARTICLE REVIEW

As products move through the product life cycle, manufacturers face increased competition from direct competitors as well as from substitute products. Profit margins fall as competition increases, and once-strong product performers may fall by the wayside. One way for companies to counteract this problem is to develop new uses for existing products, or to have their own substitute products enter the market. In doing so, they run the risk that they will dilute the performance of the original product, but they may also gain market share that they might not otherwise realize. This research examines the recently announced strategy of Disney in the disposable DVD market, and considers the theory behind the company's reasoning.

According to Daily Variety, Disney will begin test marketing so-called disposable DVDs in four cities beginning in August 2003. Starting with eight titles, none of which include any of the studio's animated offerings, the company will determine if this is a viable product offering. The titles slated for inclusion in the test include some that were b

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Category: Business - M