For the long run, the cost per 100 plastic rings is far less than that of steel rings. If the prices of both rings are the same, the plastic rings are profitable. It is clear that in the long run, steel rings will not take any share because of its high production cost. However, even though the company shift to the plastic rings production and drop the steal rings, it still poses 3 concerns as below. ◦ Further price reduction ◦ Overhead cost on plastic rings ◦ Demand decrease