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:

Subscription Commerce

A business model where customers pay a recurring price at regular intervals to access a product or service.

Recurring Schedule

A planned sequence of events or actions that repeat at regular intervals.

Social Media Networks

Online platforms that enable users to create, share content, and participate in social networking, facilitating communication and interaction among individuals or groups.

Multichannel Marketing

A marketing strategy that uses multiple channels, such as online, in-store, and mobile, to interact with and sell to consumers.