Maverick Systems Was a Leader in the Phone Market and Profits

question 14

Multiple Choice

Maverick Systems was a leader in the phone market and profits from its cell phones were very high.Maverick Systems developed a new generation smartphone and has been advised by a consulting firm to "embrace cannibalization." This means that the company should:

• A) introduce the new technology right away and increase its market lead while taking away profits from its present product.
• B) delay introduction of the next generation product until profits have begun to significantly decrease for the current product.
• C) use up most of its financial resources in promoting the new phone.
• D) wait for the previous cell phone to become obsolete and then introduce this new phone into the market.