Since the product is essential, low-cost, and virtually impervious to malfunction, they had a 95% reorder rate, with only 5% of sales going to new customers. Of those reorderers 98% also ordered other Case products as needed. Business Calendar Market The entire commercial desk calendar industry was mainly divided between Case and a company called Watts Corporation, who held a 20-25% market share of the $25-30 million dollar industry...
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Gaining market share from Watts was not a feasible option due to the drop in margins it would cause. It was thought that companies would need a $2-4 million minimum capital investment plus the working capital to support seasonal fluctuation, and take 3-5 years to even reach break-even. Since the only reasonable basis to compete in this market is price, and Case held economies of scale largely reducing its costs and expenses, it was inconceivable that new entrants were a significant business threat...
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