John Nielsen, the recently appointed CEO of Buksér og Berging, a leading Norwegian tugboat operator for harbor assistance, is reviewing plans for a revolutionary design for a new tugboat to assist in the steering of large tankers as they navigate narrow harbor approaches. Up to this point, regular harbor tugs have also been used to provide steering assistance. The design is based upon the understanding that steering assistance requires the absorption of different types of pull and thus requires a different tug design. Naval architects are proposing the design, tugboat captains are skeptical, and the market is ambivalent. Should the company invest in this new design when none of its present customers have asked for such a design and might be unwilling to pay for the premium over standard services? This case was designed for use in courses that focus on marketing new technologies and services and corporate entrepreneurship.
