Eddie a strictly a 20-something millennial, but he has always been smitten by th

Question

Eddie a strictly a 20-something millennial, but he has always been smitten by the warm melodic sounds of the LPs (long-playing records) of the 1960’s, the 70s& 80’s. No tapes, CDs or DVDs for him! Eddie loves to share the music he cherishes with his friends. The problem is that not everyone has a record player to play these albums. After pondering what to do about this problem, and necessity being the mother of invention, Eddie came up with the idea of a recorder the size of a hand-held flashlight that actually plays any LP album or 45rpm single record flawlessly.It was such a hit as a gift to all of his friends, Eddie decided to sell his invention to the public.

You are Eddie’s best friend and he asks you to share the business with him. You, too, see the potential for a lucrative partnership.Eddie has other lucrative ideas, and you have the knack for business. What should the two of you do to get started on this great adventure? What are some of the options you have for selling your product, and which do you think is the best route for you and Eddie to take, and why?

Explanation / Answer

Eddie has a lucrative idea wherein he has undergone product innovation to develop the small hand held LP player. As he has introduced the product he will earn royalty on its copywright. He is the front runner in this innovation. As he has invited his friend to join this business he definitely sees synergies in this liasion wherein he will bring in the technology to the table and his friend the business acumen. The symbiotic relationship between Eddie and his friend can turn his venture into a successful one.

To be able to push this idea out to the market, Eddie can either choose to undertake the production of this good by himself along with his friend or simply sell the product idea to a third party and earn income out from that. The difference between the above two options lies in the profitability and the time horizon under question.

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