Product details

This case is based on a decision whether or not to expand the production facilities of this smaller contract electronics manufacturing company based in St. John''s, Newfoundland. The expansion decision is used to enable students to explore the business strategy and development of this technology-based company from its establishment in late 1986. The case highlights the differences between ''product business'' and ''project business''. NewTech, from necessity, is undertaking both types. Many cases focus on large product companies that sell defined and ready-made products, essentially from stock, to consumer or other well described markets. However, many companies do not have products per se, rather, they sell on contract their expertise to clients who require particular services, such as design, prototype production, or manufacturing. The case also emphasises the importance of having sufficient financial resources, in order to fund the long-term development of technology-based business.