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 True Dimensions – Risk Analysis

8.1 Patent and Trademark Infringement

True Dimensions has exclusive rights to US Patent #5,141,285, a utility patent with claims on the “modified neutral body posture” that the FlogistonTm Chair adopts. The company will register for international trademarks for the company name and the name of the chair in 1995. The trademark will be True Dimensions’s primary source of protection against infringement. True Dimensions will build brand equity in the company name and its products using marketing programs aimed at communicating the chair’s unique history and association with NASA, the patented FlogistonTm posture, and differentiable features. Internationally, the company will rely exclusively on the trademark, as the patent provides limited overseas protection.

8.2 Price Competition

Product differentiation through innovative unique designs allow manufacturers in the ultra-contemporary market to maintain high margins. True Dimensions will continue to develop new products and reduce prices as each product matures.

8.3 Cost/Quality Tradeoff

True Dimensions has selected its current vendors based on their reputation for quality work and the recommendation of industry advisors. The company is establishing required quality specifications for its outsourcing suppliers and will monitor their output.

The current production cost has created a need for True Dimensions to evaluate production and design alternatives. Any future material changes will take into consideration the value of aluminum’s inherent responsiveness and uniqueness in design. As demand increases, other significant cost reductions will be realized through volume discounts on leather upholstery, and production insourcing.

8.4 Production Scheduling

To hedge against potential supplier problems in meeting demand lead times, the company has evaluated and chosen competent manufacturing partners which are in position to meet the company’s growth needs. True Dimensions recognizes that conditions may change requiring the company to take a more self reliant approach. True Dimensions currently owns all tooling held by contracted vendors specifically used for the production of the company’s products, and is prepared to shift from one vendor to another should it become necessary.

True Dimensions, Inc.
Table of Contents Appendices
0. Executive Summary
1. The Company
2. Products
3. Market Analysis
4. Technology & Operations
5. Customer Interviews
6. Marketing Strategy
7. Organization
8. Risk Analysis
9. Financials
Financial Statements
All information herein is confidential and belongs to True Dimensions, Inc.

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