1) Using the industry sales forecasts for the next five years as obtained via the BASS model, the market share estimates from the PERCEPTOR model, and the additional financial information provided in the case, obtain a financial analysis for Nortel's switch product with the FINANCIAL model. How profitable a product will this switch be if launched?
2) Using the DEFENDER model for support, determine the effect of the competitive attack by Nortel on Ericsson's market share in Mexico. Is Ericsson's planned repositioning effective at keeping Nortel out of this market, or at least reducing its importance as a major competitor? What changes (if any) would you recommend in Nortel's perceived position if Ericsson follows through on the implied threat? How might Nortel accomplish this repositioning?
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