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Introduction During the 1990's, computer technology was the fastest growing industry in the world. Almost every school, business, and home was quickly becoming computerized. CRU Computer Rentals took advantage of this trend and offered computers for rent to three major markets: large corporate accounts trying to stay on the cutting edge of technology, consulting firms and small businesses, and participants in trade shows. CRU would rent computers from four weeks up to eight weeks. Demand and sales were steady throughout the early nineties. However, as technology became more affordable, the need for rentals began to diminish and was apparent with the decline of sales for CRU. Richard Sarkis, general manager for CRU, started a discount program to spur demand. The sales effort created the needed demand, but profitability continued to decline. What CRU failed to recognize was that demand alone would not drive the profits. CRU had a number of weaknesses...

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