Johnson Technology, a Highly Successful Producer of Specialized Equipment for the Paper

Essay

Johnson Technology, a highly successful producer of specialized equipment for the paper industry is contemplating entry into a new industry segment. Beth Walker, the firm's marketing vice-president, has always felt that Johnson Technology could serve the equipment needs of food processors like General Foods. The same basic technology underlies the equipment in both sectors and Beth feels that Johnson Technology has a meaningful edge over all competitors.
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Describe the company, competitive, and market factors that the firm should consider before committing resources to this new industry segment.