(Solved): Based on this situation, Kari would like you to address the following questions in the second part o ...

Based on this situation, Kari would like you to address the following questions in the second part of your memo: • Which of NCA’s existing products are most exposed to the risk that Nomad Revolution’s Nomad Bootcamp product poses? How should we determine NCA’s level of exposure to this new competitive threat? • Relatedly, what would the potential impact of this competitive threat be (in dollar terms) if NCA simply waits and does nothing? Again, please explain the logic that underlies your answer. • To defend itself from this competitor, NCA is considering launching a new fighter brand called Nomad Jumpstart. This program would also be a 1-on-1 coaching product and would offer 24 annual sessions like NCA’s existing products. The total HR costs associated with the product are estimated to be $100 and the price to clients would be $275. Based on the data that you have in hand, would it make sense for NCA to launch this fighter brand? Specifically, Kari is worried that this new product could cannibalize some of NCA’s existing sales and negatively impact the bottom line. Which existing product / products would be most likely to be negatively affected in this way and how does the impact of this cannibalization compare to the “wait and see” scenario that Kari is also considering? Based on your analysis, would you recommend launching the fighter brand or not?Karı Lang also needs your input and guidance on an issue that has recently been keeping them up at night. Recently, a new Spanish competitor called Nomad Revolution has come on the scene and has launched a new product that Kari is concerned about. The company's product is called "Nomad Boot Camp" and it is designed as a 1-on-1 live coaching program that, like NCA's offerings, consist of 24 live online sessions per year. Nomad Boot Camp is specifically designed to take highly skilled professionals (e.g., software developers, social media managers, UX designers), introduce them to the fundamentals of remote work, and prepare them to launch their own successful remote work businesses. The company is offering this product to its clients for a price of

per session. As with NCA's products, clients must purchase a block of 24 sessions that must be completed in a 1-year period. Although this new upstart has only made inroads in two markets (Portugal and Spain), Kari is concerned because Lisbon, Portugal and Barcelona, Spain are both major international hubs for the digital nomad movement. Thus, they are worried that Nomad Revolution could quickly become a formidable player in the nomad coaching market. Nomad Revolution's success in each of the new markets it operates in has been a bit different. Kari's team has been analyzing the situation in both countries and has observed the following: The data from Spain suggests that Nomad Revolution is a very serious threat and shows that it has captured

of the nomad coaching market in that country The NCA team believes that there is a

chance that something similar could take place worldwide, if no action by NCA is taken. The data from Portugal suggests that Nomad Revolution is a slightly less serious threat and shows that is has captured

of the market in that country. The NCA team believes that there is an

chance that this could occur worldwide if no action by NCA is taken. Based on this situation, Kari would like you to address the following questions in the second part of your memo: