If a Firm Invests in Continuous Innovation and Willingly Cannibalizes

question 21

Multiple Choice

If a firm invests in continuous innovation and willingly cannibalizes its existing products with more advanced products,the firm can

• A) lose a significant number of customers.
• B) introduce the next generation product while continuing to reap profits from the current product.
• C) prevent competitors from achieving a significant technological gap.
• D) just use deployment as a mechanism to earn revenues from its innovations.

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Definitions:

Herbivore

An animal that feeds primarily on plants.

Plants

Multicellular organisms in the kingdom Plantae that photosynthesize, using sunlight to convert carbon dioxide and water into glucose and oxygen.

Consumer

An individual or group that purchases goods and services for personal use, playing a critical role in the economy by driving demand and influencing production.