Assume you have recently been hired as a new manager of EyeTech Company, an innovative company that sells specialized eye care treatment equipment to Ophthalmologists, Optometrists, clinics,and hospitals.

The word has gotten out that EyeTechCompany and other companies selling similar products are quite successful, so many groups of wealthy investors are in the process of putting together more companies to compete directly against EyeTechCompany and others.Because of the additional competition, you are tasked with coming up with several strategies to help EyeTechCompany maintain its competitive advantages.

1. With respect to pricing, you have three basic choices: lower the prices, raise the prices, or maintain current prices.Explain the pros and cons of each option in the face of the new competition.

2. How would you approach any of your customers that have been consistent buyers of EyeTechCompany's products over many years, but they advise you that they like what the newcomers are offering, and they are also offering to sell their products at lower prices that EyeTechCompany cannot match?What would you do to try to keep the customers loyal to EyeTechCompany?

3. You soon discover that the new competition is offering equipment that is more advanced than EyeTechCompany's equipment.Two options present themselves to you: A. Immediately invest in and offer the same quality of equipment to your buyers so you can compete more equally with the new competition, or B. Invest the same amount of money into researching even more advanced equipment to more than likely enjoy a competitive advantage over all of your competitors.However, this will take some two to three years to develop and offer on the market, plus the costs will be significant and could diminish your overall profits for many years.Also note that if you go with option A, the investment cost would be such that EyeTechCompany will not be in a position to develop new equipment for at least 4 years.

Select the option you believe will work best for EyeTechCompany, and explain why you believe that option is the best one.Then explain why you believe the option you selected is a better option than the option you did not select.