New product development is critical for business success, and this case provides information on techniques such as outsourcing and strategic partnerships that companies are using to reduce their risks during the new product development process.

1. What lessons about product development does this case demonstrate?

2. Why might it be advantageous for competitors to cooperate in the development of new products? Provide additional product examples.

3. Why would consumers be willing to pay a higher price for a product that is essentially identical to one with a lower price?