Background information The Elite Mobile Company specialises in customised smart phones in the Asian and European markets. The products are Cynosure and Panacea. These products have performed relatively well as compared to the products of its six competitors such as the Red, and the Blue among others. The performance has been very promising in the European and the Asian markets, especially for the high market segment. The Elite Mobile Company’s business mission is to be the global leader in provision of affordable, convenient, and quality mobile phones within a sustainable business environment. With the current market condition, there is need to introduce a new product in the Asian market. Specifically, the proposed product will target the low segment of the Asian market. The proposed product will be called Altezza. There is need to introduce the third product to improve the company’s competitive advantage and expand its current market. Current situation and trends The Elite Mobile Company has performed well in the European and Asian markets. The company has been successful in its Cynosure and Panacea brands. The brands mainly target the high-end market segment in the Asian and European market. The price elasticity of this segment is rather high and thus, the availability of cheaper models with reasonable features has a significant impact on the realized growth. The demand growth estimates for Asia (23%) seems even more promising than in Europe (19%). In Asia, the market is still clearly dominated by high-end segments. By offering new high-tech model targeting the low-end segment, the Elite Company can create more demand and improve on its sales. Therefore, the proposed new advanced product, when brought to the Asian market, might turn out to be very successful in the long run. If the Elite Company decides to launch the new product called the Altezza, it will have to be sure that product is not too close to others in terms of features. Similarity causes the products to cannibalise each other and reduce the competitive advantage. Competition and micro environment It is difficult for any aspiring company to enter into the Asian and European mobile phone market and manage to break even easily since there are many players. The notable players are the Red and the Blue companies among others which control over 70% of the market. There are several substitute brands from which the potential customers can choose from. Among the substitute brands include those of the Red, Blue, One Phone, Tech Mobile, and Cooper Tech. All the players in the Asian and European industry are putting measures in place to ensure they attract more customers and therefore expand their market share. Fortunately, the Elite Mobile Company’s proposed third product is well positioned within the above parameters since its targets only the low-end market segment in the expansive Asian market. Trends (size and growth rates) for the overall market and key segments Currently, the company has two products which are Cynosure and Panacea. They both retail in the European market at €520 and €250. Sales to the high-end household and companies are higher than the regular citizens and companies. The total sales for Cynosure are 17.60 w