Cree Inc.: Introducing the LED Light Bulb Cree, a maker of LEDs with over $1 billion in sales to B2B customers, introduces two LED light bulbs for the consumer market. Crees bulbs would be sold exclusively by The Home Depot.

Read the case, discuss with your group and answer the following questions: Q1) What is the potential size of the market for Cree Incs LED bulbs (in millions of bulbs)? Note that all data is given the the case itself but we need to make two more assumptions - Let us assume 20% of all bulbs sold in US are sold through Home Depot and that since Cree is competing against CFLs and halogen lamps, Cree gets 25% market share and the competing technologies of Halogen and CFL get the remaining 75%. HINT: Using both the quantitative approach of market demand estimation (aggregate method) discussed in class to get an estimate on the potential size of the market. Q2) The company is planning to price their product at $10 (for 40-watt) and $13 (for 60-watt). How much profits can Cree expect (in millions of dollars)? ]

Hint: For simplicity, assume all of Crees sales were 60-watt equivalent (@ $13 / bulb).

There is no page limit. Answer questions using the concepts, frameworks and tools learned in previous sessions.

There is no required formatting from my side e.g., you do not need any abstract/ summary etc. - just answer each question separately and completely.

You can organize your answer as you like to improve overall presentation clarity and quality. As necessary, feel free include tables/figures to improve the quality of your presentation.