Technology That Allows Consumers to Access Information on the Internet

question 84

Multiple Choice

Technology that allows consumers to access information on the Internet from a cell phone is in the introductory stage of its product life cycle. The industry is composed of several small firms with state-of-the-art products that are neither standardized nor compatible with one another. Moreover, these small firms have limited marketing expertise and little money to spend on marketing; their common strength is
Engineering. This industry would welcome the entry of a giant in the mobile phone industry like Nokia because:

• A)Nokia's entry would help segment the market, establishing targets for the smaller firms.
• B)the small companies could leapfrog beyond Nokia's products.
• C)Nokia could set standards and generate primary demand.
• D)Nokia could solve the remaining technological problems.

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Definitions:

Future Value

The value of an investment or sum of money at a specified future date, calculated by applying a rate of interest or return.

Stock Portfolio

A collection of stocks owned by an individual or an institution, managed as a single entity with specific investment goals and strategies.

Equilibrium Interest Rate

The interest rate at which the demand for funds equals the supply of funds, balancing savings and investments.

R&D Spending

Expenditures on research and development to innovate and improve products or processes.