Case Detail

Case Summary

Energy Gel: A New Product Introduction (A)

Case Number: 5-403-756(A), Year Published: 2003

HBS Number: KEL083

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Authors: Artur Raviv; Jan Henrich; Gero Steinroeder

Key Concepts

Capital Budgeting, Investment Evaluation, DCF Analysis, New Product Introduction

Abstract

This case involves an analysis of the decision regarding a new product introduction. The main issues for discussion are: sunk costs, incremental costs, cannibalization, shared facilities, and the treatment of inflation.

Number of Pages: 11

Extended Case Information

Teaching Areas: Finance

Teaching Note Available: Yes

Geographic: US

Industry: Food

Organization Name: High Performance Corporation

Organization Department: Business Development

Organization Size: Large

Decision Maker Position: VP Business Development

Decision Maker Gender: Male

Year of Case: 2002