The following appeared in a memorandum from the development director of the Largo Piano Company.
“The Largo Piano Company has long been known for producing carefully handcrafted, expensive pianos used by leading concert pianists. During the past few years, however, our revenues have declined; meanwhile, the Allegro Musical Instrument Company introduced a line of inexpensive digital pianos and then saw its revenues increase. In order to increase Largo’s sales and in fact outsell Allegro, we should introduce a line of digital pianos in a variety of price ranges. Our digital pianos would be likely to find instant acceptance with customers, since they would be associated with the prestigious Largo name.”
1， The increase of revenue may just coincided with the sale of inexpensive digital pianos, while the two actually had no causal realationship.
2， The strategy used in other companys may not be suit for the Largo Piano.
3， The expected instant acceptance with customers may not be the case. As the fact the author cited, the revenue of the Largo Piano have declined during the past five years, it may no longer own the prestige.