ASHLEY GRACE A.

COLLADO

CASE STUDY 2

Cooling Aid, Inc. (CAI) is a manufacturer of a component in the assembly of residential air
conditioning units. CAI is one of the only five suppliers of this particular component in the Philippines. Its
customers are composed of makers of branded residential air conditioning units. Half of these firms
produce all their components in-house while the balance purchases them from CAI and the other
suppliers of the component in the country. CAI’s business is extremely capital intensive, and their 40%
share of the market makes them the most profitable domestics suppliers.

QUESTION: Should CAI try to be a first-mover with the new technology? Why?

In my own perspective, CAI should try to be the first-mover with the new technology in order to
reach new markets that can make them more profitable domestic suppliers. Though their business is
extremely capital intensive, every businesses should know how to gamble and take risks because there
is a chance that it can make them more competitive and profitable, if they did not want the outcome of
the risks that they take, it will surely help them to know what are the things that they need to improve
and what are the things that they should not do in order to not harm the business and will help to
become more aggressive and brilliant business.