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| The initial prototype proved acceptable in comparison to other
brand name radios but nothing new was being offered and manufacturing costs were
still too high. To enter the electric appliance industry, it was essential that
SANYO succeed on its first try. Toshio and other SANYO executives including the
plant manager and chief designer had repeated meetings to examine the prototype.
The main obstacle they faced in their attempt to cut costs was the wood cabinet.
Mass-production of this type of frame was difficult as it required many steps
and a great deal of manual work. In frustration, Toshio remarked, "Is there
nothing that we can use instead of wood? This will be the first electrical product
to hit the market with the SANYO name. And the success of this product could very
well determine our future in this industry." The chief designer had one suggestion,
"There is a material called plastic that has come in from America that could
work." Toshio thought the idea sounded promising. |

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