Hydro Flask makes premium water bottles, and they are thinki…
Hydro Flask makes premium water bottles, and they are thinking of launching a new water bottle with a self-sealing straw. The technology is considered breakthrough but the contribution margin on the new bottle is lower than the original Hydro Flask water bottle and the company is concerned that the new bottle will steal customers and sales from its original product and result in a lower overall contribution margin percentage. This concern relates to what concept?