Augat Electronics Inc. was finalizing the plan to launch a new line of connectors and tools for cable television service technicians. While the line was being developed, a major new U.S.-based competitor launched a new product line at a premium price and captured the leadership position in the Canadian market. Key decisions facing Augat were how to price the products and what the supporting marketing strategy should be. The new Augat connector product appeared to offer customers significant economic benefits.
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