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Majestic Mattress sells mattresses and other bedding products to institutions such as hospitals, hotels, and dormitories. Monica Ramirez, president of Majestic, had just returned to

Majestic Mattress sells mattresses and other bedding products to institutions such as hospitals, hotels, and dormitories. Monica Ramirez, president of Majestic, had just returned to her office from the annual Hospitality Squared convention, a trade show for the hotel industry, where she spent an enlightening evening with a representative from the companys former top account. She called in Monty Rupp, vice president of manufacturing, to discuss what she learned. Monty, were having some problems, she opened the conversation, pointing to a chair for Monty to sit. Patel tells us that hes switching to a no-turn single unit for their Comfotels. Comfotel is the lowest-priced hotel in the Patel chain, and a no-turn single unit is a mattress that goes on a plywood frame, not needing a box spring. No-turn means that it doesnt have to be turned over regularly to maintain its comfort and shape. Monty grimaced in reply. Who came up with that? He didnt tell me, she said. But Im afraid that were going to lose our box spring and mattress sales in his higher-level hotels if we arent careful. One problem is he says that when they dont use fitted sheets, the sheets wont stay on the mattress because our cover is too slick. He has some other concerns too. I want you to call him right away and see what you can find out. The issue seems to be innovative products being delivered by someone else. How can Monica create a system to encourage new product development in collaboration with its customer, Patel, to be able to create value for Patel?

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