Chatbot: Tennis Company

You are a former professional tennis player who has recently been brought on by a United States based tennis racquet manufacturing company, StrikeCo. While you may not know the ins and outs of the manufacturing process, the company values your input as someone who has a lot of experience with the product. You have been brought on specifically to help the firm decide whether it should enter the European market. What 4 things would you examine first when structuring your approach to this task?

StrikeCo, after careful consideration, is deciding between launching a racquet in Europe targeted at children aged 5-10 or a racquet targeted at teenagers 13-18. Before making this decision, what are some key questions that they should ask to get to the best possible move? Pick the 4 that make the most sense to you.

Further analysis has shown that the children’s racquet sells for $100 and has a profit margin of 15%, and the teenager racquet sells for $150 and has a profit margin of 10%. The cost to enter the market for the children’s racquet is $10M, and the cost to enter the market for the teenager’s racquet is $15M. How many racquets must be sold in each category to break even?