BA512-001 Li Huimin If it was the end of 1998, I think the main issue that Keith Collins should be focusing on is his competitor, a new company founded by the three resigned presidents. The two things he needs to focus on are avoiding further rumor and developing new competitive product.
First, Collins needs to avoid further rumors to maintain Paragon's good reputation and reliability among suppliers and customers. According to the case, the owners of the new competing business recruited the former employees quickly and spread a rumor that Paragon would not survive. It seems that it is a tough competitor of Paragon.Collins should find some solutions to avoid further impact by that company, after all, it is not a good thing for a rebuilt company to be surrounded by rumors. He can increase investments on public welfare, or increase advertising on Paragon's image by using the Internet or TV commercials. Second, developing new competitive products is necessary.
The new company's owners have extensive knowledge about Paragon's history and techniques. So it will be easier for them to produce similar or even the same products as Paragon, and those products will snatch some market shares from Paragon.If Collins can not develop a new strategy to create a more competitive product, Paragon will loose more and more revenue in the future. Creation is important to Paragon to succeed in the competitive market. Hence, Collins should focus on his competitors, especially the new company created by the three presidents who resigned from Paragon.
In conclusion, as the president of Paragon, Keith Collins should make some efforts to compete with the new company to achieve more market shares and revenue.
