Our client, Chupa Chip Microchips is a leading niche microchip manufacturer that owns around 30% of the global market. Chupa Chip's main competitor, Megaship Microchips, also owns around 30% of the global market while the rest is fragmented between smaller players. Due to recent geo-political developments, the cost of transistors, which are a component of a microchip, has increased dramatically. In order to cope with the increase in cost, our client has decided to increase the price of its product by 2$ which led to an immediate 20% drop in market share. After conducting market research, our client was surprised to discover that Megaship Microchips has not increased the price of its product. What is even more surprising is that the competitor does not seem to have had a dip in profit. It turns out that Chupa Chips Microchips implemented the second in-house solution. There is between 15% to 20% vacant market share as a result of recent exits. After conducting a quick market study, your client determined the following: No market share has been captured by competitors so far Chupa Chips Microchips is capable of capturing the entire market share if they make a move within 1 month Chupa Chips Microchip will lose 5% of the available market share if they do not make a move within 1 month In order to be able to accommodate the increase in demand and capture additional market share, Chupa Chips Microchips will need to hire 2 additional employees. This will require your client to build an extension to the warehouse in order to comply with health and safety regulations. Extension Cost: 5 million dollars Time to implement: 25 32 days Calculate the additional potential profit and provide final recommendations Our client, Chupa Chip Microchips is a leading niche microchip manufacturer that owns around 30% of the global market. Chupa Chip's main competitor, Megaship Microchips, also owns around 30% of the global market while the rest is fragmented between smaller players. Due to recent geo-political developments, the cost of transistors, which are a component of a microchip, has increased dramatically. In order to cope with the increase in cost, our client has decided to increase the price of its product by 2$ which led to an immediate 20% drop in market share. After conducting market research, our client was surprised to discover that Megaship Microchips has not increased the price of its product. What is even more surprising is that the competitor does not seem to have had a dip in profit. It turns out that Chupa Chips Microchips implemented the second in-house solution. There is between 15% to 20% vacant market share as a result of recent exits. After conducting a quick market study, your client determined the following: No market share has been captured by competitors so far Chupa Chips Microchips is capable of capturing the entire market share if they make a move within 1 month Chupa Chips Microchip will lose 5% of the available market share if they do not make a move within 1 month In order to be able to accommodate the increase in demand and capture additional market share, Chupa Chips Microchips will need to hire 2 additional employees. This will require your client to build an extension to the warehouse in order to comply with health and safety regulations. Extension Cost: 5 million dollars Time to implement: 25 32 days Calculate the additional potential profit and provide final recommendations