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Meeting the purchase: To fulfill the figures necessity with the orders, Nakamura would possibly really have to broaden capacity or reduce the domestic market place. If he chose to broaden potential, the danger was of idle capacity in case the U.S. marketplace didn't respond.
If desire exists from the U.S., the capability is usually expanded. Using this type of supply, threat is minimized. Even more, It will be competing By itself model title. Distribution might be taken care of and prolonged-expression revenue maximization criterion might be satisfied as this feature has the opportunity of $one million in profits per annum. At some time of renewal of the deal, Nakamura might have enormous bargaining electric power.
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