When the Market for Standalone Global Positioning System (GPS) Devices

question 45

Multiple Choice

When the market for standalone Global Positioning System (GPS) devices declined with the arrival of GPS-enabled mobile phones, Magnet Inc., a manufacturer of GPS devices, bought out most of its rivals that were planning to exit. This allowed the company to get rid of all the excess capacity and acquire a monopolistic market power in the declining industry. Which of the following strategies has Magnet adopted in this scenario?

• A) harvest strategy
• B) maintain strategy
• C) consolidation strategy
• D) differentiation strategy

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Definitions:

Mutual Ground

Shared beliefs, knowledge, or interests that make communication more effective and efficient between parties.

Ethics

Moral principles that govern a person's behavior or the conducting of an activity, often applied within professional and personal contexts.

Etiquette

The set of rules or customs governing behavior in particular situations, often ensuring respectful and considerate interaction.

Bad News Messages

Communications that convey unfavorable or negative information to the recipient, often requiring careful wording to maintain goodwill.