The following appeared in a newsletter offering advice to investors: "Techcorporation is our top pick for investment this term. We urge all of our clients to invest in this new company. For the first time in ten years, a company that has developed satelli

The advise provided by the newsletter urges investors to invest in the new company “Techorporation”, and states that it would be a highly profitable move for those who invest now. The reasoning of the newsletter for selecting Techorporation as the top pick for investment is that it is the first satellite technology that has been approved by the FTA to compete with the current satellite provider in 10 years. Though it sounds promising, there are many unanswered questions about Techorporation that need to be considered and researched to determine the legitimacy of the advice.

Firstly, the advice does not mention anything about how the service of Techorporation compares to the service of the current satellite provider. From the consumer point-of-view, are the services and features offered by Techorporation superior enough for them to consider superseding their current satellite provider with Techorporation? Features such as programming, customer service, and pricing need to be compared to determine if Techorporation is a viable competitor. If it is determined that the options and features offered by Techorporation provide an obvious advantage to consumers, the advice would have more support.

In the immediate future, investing in Techorporation may seem like a good idea; however, the long term effects need to be considered to determine if it would actually be a profitable choice. Initially, consumers may be excited to switch to a new satellite provider, and may proceed to do so. However, if the promises made by Techorporation are not upheld, many consumers may decide to switch back to the other satellite provider. This woul actually lead to a long term loss for those investors that decided to invest now. The long term success of Techorporation depends on may factors including their ability to compete with the other satellite provider in terms of features and pricing, as discussed above, their marketing stratey, their customer service, the quality of the equipment, and the reputation of the company as a whole. Research can be done to formulate a theory as to how the company might be doing in, one, five, or ten years from now. If it is hypothesized that they will be in good standing, it will further support the advice that investors should invest in Techorporation now.

The advice does not mention whether or not programming options outside of the satellite industry have been considered. With the growing popularity of non-satellite options such as online streaming and Netflix, consumers may decide to move away from satellite programming as a whole. These options may even provide more options for the consumer. By considering and researching the current non-satellite options, we would have a better idea of whether consumers in the near future would be more likely to stick with satellite options, or whether they would be more inclined to try something new. This could affect the success of Techorporation, which would ultimately affect the investments made in the company.

The advice offers a strong initial reason for investors to invest in the new satellite company, Techorporation; however, it fails to address or consider questions that could affect its validity. The out comes of considering the above explored questions could provide solid support for or against the advice to invest in Techorporation.