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being released. At the end of March 2012, RIM went from a profit of US$934 million to a loss of US$125
million. RIM has decided to create Blackberry 10 in hopes of getting back into the competition with their
new smart phone.
Sonys PSP is another product that is entering the decision stage. The PSP series resulted in a loss of $45
million because smart phones are coming into the market with the same capabilities as the gaming device.
Other examples are VCR, DVDs and Tube TV. IPod classis to iPod shuffle to iPod nano to iPod touch.
A product is discontinued if it is no longer popular or profitable or something better is developed that can
generate more interest or do something better than the competition with the ultimate goal of more sales
and profit.
Company executives may decide to discontinue their products for several reasons, but the primary reason
is it that continuing to produce the item is no longer profitable.
Other reasons may include, but are not limited to, the following:
1) There is no longer a demand for the item. Another competitor may have developed a substitute that is
cheaper and/or better quality.
2) The raw materials (the items used to make the product) are no longer available or are prohibitively
expensive. If the raw material price goes up and the company is unable to raise their price to compensate,
it does not make financial sense to continue making the product.
3) A new product has been developed to replace the existing product.
The primary reason for any major managerial decision is because it either does or does not make financial
sense to continue or discontinue making a product.
Fads come out of nowhere and often have no easily discernible reason for being. They are fuelled by
popularity and press until they burst into a full buying frenzy and then, just as quickly, fizzle out. They are
often meant to be clever or unique, purely for the sake of being cool. A fashion that is taken up with great
enthusiasm for a brief period of time; a craze. Clothing, foods, exercises, hairstyles, language are all
areas that are subject to fads.
A trend, on the other hand, is based on consumer needs and lifestyle changes. Products that are born out
of a trend are made specifically to meet new consumer needs and behaviors. Trends start with the seeds
of change and slowly grow into new directions impacting both products and entire industries. Although
initially, product sales at the beginning of a trend may start more slowly than with a fad, sales increase
along with the growth of the trend and its adoption by the mainstream. Trends are a bit slower paced but
represent something that is occurring on a much wider scale than a fad. A style of dress may be a fad
that only affects one segment of the population, but the use of social media is a trend that reaches a
broader segment.
A Brief History of All Things Dew
1940's Two brothers, Ally and Barney Hartman, were bottling a lithiated-lemon ("7-up" flavor) drink as a
personal mixer for hard-liquor. They jokingly called the drink "Mountain Dew" after Tennessee Mountain
Moonshine.
1948 The Hartman Brothers filed for and received a trademark on the now famous label - a professional
redraw of the 1946 paper label. The flavor was still the 7-up type flavor originated by them in the 1940's.
1951 Ally ordered the first ACL Mountain Dew bottle. The bottle was green glass with white paint (no
red) showing a hillbilly shooting at a revenuer running from an outhouse. The bottle read "by BARNEY
and ALLY". Interestingly, when the bottles arrived they were put in a warehouse and not used till 1955.