In 1982, Sonance invented what would prove to be a new product category: in-wall home-stereo speakers. Two decades later, in an attempt to benefit from the soaring housing market, management shifted the company's focus from custom-installation dealers to retail consumers. Although the new strategy led to accelerated growth, management soon found that Sonance's relationship with its core customer base had been eroded. Should Sonance recommit to high-end dealers? Or should it introduce a new product series, and if so, at what price point? In this case, students determine the best strategy for Sonance's future.

Case id: 080515
Supplemental Material: Teaching Note