2. Which system should Perez select? Why? Megabox, Inc. is a major manufacturer of color television sets and video cassette recorders (VCRs) with its major production facility and final assembly plant in the western Pennsylvania region of the United States.

Competition from Far Eastern manufacturers has compelled the company to trim its product line and to concentrate on a limited number of quality products while attending to the needs of specialized market segments.

The leap of the oil-producing Middle Eastern countries into the contemporary consumer society has made them important markets to Megabox products. TV broadcasts have been introduced into those countries during the last two decades, but VCRs are newcomers to these markets, and their sales have been growing fast during the last couple of years.