Sony, a Firm Once Synonymous with Portable Music, Has Ceded

question 61

Multiple Choice

Sony, a firm once synonymous with portable music, has ceded its market dominance to Apple because:

• A) it did not provide tracks from Sony Music artists to the Apple iTunes store.
• B) its technology offerings were too futuristic and out of sync with the waves of computing to appeal to customers.
• C) it failed to take advantage of opportunities presented by Moore's Law.
• D) its music players contradicted the price/performance phenomenon predicted by Moore's Law.
• E) it attempted to straddle the twin markets of online music retail and electronic music players, and could not capitalize on either.

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Definitions:

Constant Opportunity Costs

A scenario where the cost of forgoing the next best alternative remains the same regardless of the level of production.

Import Quota

A government-imposed limit on the quantity or value of goods that can be imported into a country, often used to protect domestic industries.

World Price

The price of a commodity that is determined by the global market, reflecting its supply and demand worldwide.

Net Loss

A financial situation where total expenses exceed total revenues over a specific period, reflecting a negative profit.