Libra Electronics Has Invented a New Technology to Make Laptops

question 73

Multiple Choice

Libra Electronics has invented a new technology to make laptops that are extremely lightweight and unbreakable. The company is advertising aggressively and wishes to create demand for its new range of laptops. To attract customers, the company has priced the laptops attractively. However, to earn a profit, the company has priced the batteries required for the laptops extremely high. Which of the following is illustrated in this scenario?

• A) Downsizing strategy
• B) Harvest strategy
• C) Razor and blade strategy
• D) Divestment strategy
• E) Switching costs

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Definitions:

Decision Makers

Individuals or groups who have the authority to make choices that influence outcomes in a variety of contexts, such as organizational or governmental settings.

Unsanitary Drinking Water

Drinking water that is contaminated with pathogens, chemicals, or wastes, posing health risks to consumers.

Developing Country

A nation with a lower living standard, underdeveloped industrial base, and low Human Development Index relative to other countries.

Hantavirus

A group of viruses transmitted to humans through rodents, causing various diseases including hantavirus pulmonary syndrome.