Entrepreneurial companies must overcome significant obstacles to the creation of markets innovative products in the industry are reluctant to change. Transcape system faces this callenge, as he attempts to create a market for interactive multimedia software in the conservative cardiovascular fitness industry. Their software is designed for the mind and body, thus cardiovascular exercise more interesting and fun. Creating several CD-ROM titles, the company must convince manufacturers of cardiovascular exercise equipment to build and market cars that can play CD-ROM. Accelerating the creation of installed base of these machines are becoming more important for cash-strapped start-up. As founders reconsider their strategy, they say, the segmentation of the market, exclusive vs. non-exclusive partnership, diversity and conflict in the distribution channel. "Hide
by Thomas J. Kosnik, Dave Frampton Source: Harvard Business School 21 pages. Publication Date: September 22, 1995. Prod. #: 596047-PDF-ENG
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