Both the U.S. Navy and U.S. Air Force have decided to nix their longstanding contracts with Sussex for liquid oxygen (LOX) converters, the company’s main product, favoring instead a new OBOGS (on-board oxygen generating system) technology, which extracts oxygen from the engine air during flight. The protagonist of the case Cyril Nabarkin calculates that revenue will shrink by almost 90% in just six months. He is seeking to identify new markets for the company. He wonders if Sussex has the stuff to compete in this changing market.
Sussex Industries: New Products or New Markets?
by: John Branch
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After reading and discussing the material, students should:
- Illustrate the fundamentals of marketing in realistic contexts.
- Apply these concepts to specific marketing challenges.
- Practice their analytical and evaluative skills.