Product Overview

This case focuses on product design as a source of competitive advantage. In the late 1990s, Carrier France faced extremely high labor and overhead costs relative to smaller Italian competitors in one segment. The only way Carrier could compete was by designing a product with low labor costs. While one design alternative would lower assembly costs and space requirements, market acceptance was unpredictable. Relative to another more conservative design alternative, a delayed launch was likely. The case contains rich qualitative and quantitative information on the costs and benefits of the two Aquasnap design concepts in consideration, and focuses on which alternative to introduce.