You sell horses. You have made a lot of money over the years selling horses. Pretty much every business in the world and every household owns one of your horses. You bring out a new breed of horses every 3-4 years. Sometimes these new breeds of horses are failures but in the main people replace their old horses with your new breeds.
Your only rivals in the transportation market are a bicycle company whose products have traditionally been expensive, and a whole range of people offering rideable llamas for free, but these llamas have a history of being ugly, high maintenance and frankly – they spit.
But in recent years the bicycles have become cheaper and faster and every time you go to a conference pretty much everyone there now has a bicycle rather than a horse, indeed most of them have traded in their horses for the new world of portable, folding bicycles.
The llamas are less ugly, more pliant and spit a lot less frequently these days too.
It is time for your regular release of a new horse breed.
In order to maximise your market you decide in the following approach for Horsesoft Dobbin 2013:
- You increase the cost of actually buying a horse significantly.
- You introduce a new arrangement where people can hire a horse for a year but that horse can only be used by one person. At the end of the year the horse is taken away.
- The horse is a horse, it does come with a new ribbon in its mane but that’s it.
As an MEA (Master of Equine Administration) student, do you think that the sum total of people buying and renting Horsesoft Dobbin 2013 will be higher or lower than previous breeds of horses?