When MCI Announced a Price Discount Plan Designed to Induce

question 92

Essay

When MCI announced a price discount plan designed to induce small firms to use its services,the price of its stock immediately declined.Why do you think the stock market reacted negatively to MCI's plan to attract new customers?

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Definitions:

Enterprise Network

An organization’s network, which is composed of interconnected multiple LANs and WANs.

Traditional Network

A communication framework that relies on physical infrastructure and basic software for connectivity and data transfer among users.

SDN

Software-Defined Networking, a networking approach that allows networks to be intelligently and centrally controlled, or 'programmed,' using software applications.

CIO

Stands for Chief Information Officer, a senior executive responsible for managing an organization's information technology strategy.