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With strong brand and distribution, Zenith sale for continuing operation increase from $1,401 million in 1988 to $1,549 million in 1989, but the net loss of also increases from $11 mi1lion in 1988 to $17 million in 1989. That is to say, the profit of each unit decreases more than the amount of unit increase. How to increase the unit profit is most important to the board of Zenith, experienced on high technology make more profit to Zenith even in the late of 1980?¦s. Develop new technology would be a good choice
Impediment Defense
Competitive market eroded TV unit profit, 1971 Zenith retail union price $898, 1980 decrease to $398 and 1989 down to 280, almost 3 times decrease in unit profit, only two time unit increase from 11,197 in 1971 to 24,689 in 1989...
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