TenAlpina Tools: The Entrepreneur's Dilemma
Giulia Ferrato, a recent MBA graduate, has developed a high-quality, lightweight titanium piton, a tool used in mountain climbing. She is currently contracting for the production of the pitons. At the time of the case, her sole customer has made an offer of significant guaranteed demand for a two-year period, and, almost simultaneously, she is presented the opportunity to take over the forge operation of her contract manufacturer. She is trying to decide what would happen to her business under such a scenario.