In beginning, we lost at price war because of adding features.

We were optimistic that’s why we kept adding factories. As our prices are more than the
competitors, demand going down, prices kept falling.

Asian consumers were price sensitive and American consumers did not much care about the
features.

To meet demand we outsourced, as outsourcing was cheaper than in house production. Due to this,
we did not take advantage of learning curve, and as competitor uses in house production so their
cost of production decrease over the year, because of this we have high product cost in year 5,6,7.

Our capacity utilization was almost nil. i.e. around 20% in USA and 0% in Asia.

Since most of the market covered by tech 1 so we keep selling Tech 1 and since we keep on incurring
losses so we did not have enough capital to invest in tech 3.

After Round 6 we have a lot of plant for inhouse production, however our market share was very low
due to which our demand was very low.

In round 7 we ensure that we had to take advantage of learning curve, I.e why we started produces
heavily in-house. Because we were optimistic about our demand, we produce heavily and piled up
the inventory which led to huge short term loans. also help us in meeting the demand in a better
way than our competitors after the gulf oil crisis

To manage our finances we issued more shares that caused dilution of stack of existing shareholders
in the shares, which led to lower shareholder’s return.

Since we were providing very less features, for tech 1 and tech 4 therefore our prices were very less
as compare to our competitors, this led to resurrection in our demand and we started making profits
towards the end rounds with positive shareholding return.

Since tech 1 and tech4 still dominated the market so we decided to sell these technologies in all
countries.