Cree, a manufacturer of Light Emitting Diodes (LEDs), just entered into the consumer market of North Carolina after launching an LED light bulb. This unique product has the competitive advantage of low energy consumption as compared to the ubiquitous incandescent light bulb. However, the production of this bulb costs ten times higher than an incandescent bulb. It raises various challenges, including how to manufacture it with the low cost and what are the desired level of sales.
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