Sussex Industries: New Products or New Markets?

by: John Branch

Publication Date: December 7, 2015
Length: 4 pages
Product ID#: 1-430-471

Core Disciplines: Entrepreneurship & Innovation, Marketing/Sales, Strategy & Management

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Teaching Note

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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.

Teaching Objectives

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.