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Suppose that entrepreneur Josh Rosen is considering entering the market to produce virtual reality headsets in the fall of 2 0 1 9 . Rosen
Suppose that entrepreneur Josh Rosen is considering entering the market to produce virtual reality headsets in the fall of Rosen has managed to gain access to some data regarding one of the leading firms in the industry Hightower Corporation. Hightower Corporation was founded in and began producing virtual reality headsets in January The data show the annual variable costs of production for Hightower Corporation, as well as the cumulative amount of headsets produced since the firms inception. Rosen has plans for a factory with a capacity of approximately units per year. Rosen is not sure whether he will try to enter with a low cost or differentiated strategy.
Given the data below, should Rosen enter this industry to compete with firms such as Hightower? Why or why not? If Rosen does enter, would it be preferable to adopt a low cost or differentiated strategy?
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