HISTORY Paragon was started in the late 1970’s by Jeffrey Robb. Before Jeffrey started Paragon, he was employed by a major computer firm where he worked his way up and became the regional marketing manager. While there he was responsible for the sales of mainframe computers to large companies. During this time in his life, Jeffrey became convinced that mainframes would become obsolete and that personal computers would become the future of the technological industry. The Paragon Company started out as a welding company in the 1940’s, and by the 1950’s, the company was producing lawn furniture. The first year in the lawn furniture business the company had 150,000 in sales but grew to 52 million. At that point Jeffrey began working for the Paragon Company, as a result of his uncle’s death. Once Jeffrey took over the business he modernized the entire plant, and changed the marketing scheme. These new changes started a growth pattern that tripled the manufacturing business by 1992. In the early 1980’s, Jeffrey formed a small subsidiary of the Paragon Company that dealt solely with computers. His business plan used the follower method, which focused on mimicking and offering cutting-edge technology at lower prices than competitors. Jeffrey would purchase PC components, build personal computers, and offer these high-quality products at lower prices than the leading alternatives. FACTUAL ANALYSIS The lawn furniture division of the Paragon Company began to slow by the late 1980’s because of the US housing market crisis. At that same time, manufacturing processes moved to Pacific Rim countries because wages were at 10% of the labor rate in the United States. Even though foreign manufactures had to pay taxes, duties, and freight, they could still offer products at price that was 40 % less than Paragon’s products. Consequently, the trends of the lawn furniture division were not looking well. The Paragon Company could not compete with foreign...
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