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Essay text:
Zimmermann expects EDAG to place a bid in the amount of $1,091,200. The Computron bid removes all allocated costs for R&D (8%) and S&A (6%) which is comparable to the 15% European tariff that EDAG has used to undercut Computron in the past. Mr. Zimmermann believes that Computron can charge a premium over the EDAG bid since Computron provides a superior product in addition to the opportunity for Konig to avoid any switching costs associated with moving to a new computer manufacturer.
RECOMMENDATION CONSIDERATIONS
As Mr. Zimmermann prepared his bid for Konig’s business, he considered many different aspects of the market...
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