17.1You’re the manager of global opportunities for a U.S manufacturer who is considering expanding sales into Asia. Your market research has identified the market potential in Malaysia, Philippines and Singapore's described next: Big Mediocre Failure Malaysia Probability 0.3 0.3 0.4 Units 12,000,000 600,000 0 Phillipines Probability 0.3 0.5 0.2 Units 1,000,000 320,000 0 Singapore Probability 0.7 0.2 0.1 Units 700,000 400,000 0 The product sells for $10 and has unit cost of $8. If you can enter only one market, and the cost of entering the market( Regardless of which market you select) is $250,000, should you enter on of these markets? I so, which one? If you enter, what is your expected profit?
17.1You’re the manager of global opportunities for a U.S manufacturer who is considering expanding sales into Asia. Your
Big Mediocre Failure
Malaysia
Probability 0.3 0.3 0.4
Units 12,000,000 600,000 0
Phillipines
Probability 0.3 0.5 0.2
Units 1,000,000 320,000 0
Singapore
Probability 0.7 0.2 0.1
Units 700,000 400,000 0
The product sells for $10 and has unit cost of $8. If you can enter only one market, and the cost of entering the market( Regardless of which market you select) is $250,000, should you enter on of these markets? I so, which one? If you enter, what is your expected profit?
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