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Law Incorporation [45]
3 years ago
12

Michael is the owner of a company that manufactures mp3 players for cars. He wants to expand his business, so he decides to laun

ch a new line of portable mp3 players that also can be plugged into home and car stereo systems. The sales are very high for these new mp3 players, but Michael soon finds that the sales of his old car mp3 players have greatly declined. Michael's business is experiencing:
cannibalization;A) His business is not slumping because the new mp3 players have very high sales. It is only the old car mp3 players that are having poor sales.
B) Cannibalization occurs when the sales of a new brand take away from sales of an existing brand. Whenever a firm sells a new product it must look out for cannibalization. Michael's new mp3 players are cannibalizing the sales of his old players.
C) Brand equity is the added value that brand name provides to a product. It can become diluted if the brand name is attached to too many different types of products. There is no evidence in the question that Michael's company has diluted its brand equity from making new mp3 players.
D) This is too general to be the correct answer.
E) Dynamically continuous innovation occurs when new products come out that present the same product in a relatively different form (e.g., the move from VCR's to DVD). This is a new style of the same product which is considered a continuous innovation.
Business
1 answer:
Grace [21]3 years ago
5 0

Answer:

B) Cannibalization occurs when the sales of a new brand take away from sales of an existing brand. Whenever a firm sells a new product it must look out for cannibalization. Michael's new mp3 players are cannibalizing the sales of his old players.

Explanation:

Market cannibalization occurs when a company's new product line crowds out the existing market for its current products, rather than expanding the company's market base as originally intended. In other words, rather than appealing to an additional segment of the market, a new product line appeals to the company's current market, reducing the demand for its established products. In this respect, market cannibalization is an instance in which a company's own two product lines compete against one another.

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Social media has evolved in such a way that users expect to use SM applications without paying for them. SM firms want to build
Gelneren [198K]

Answer:

The users of social media have become the product of social media.

Explanation:

The largest source of revenue for social media is advertisement, they use the pay-per-click revenue model. Another source of revenue is by offering users a basic service for free but then charging money for a more complete and advanced premium service.

7 0
3 years ago
I wanna to know answers for this questions
anyanavicka [17]
11: no, it is not right for them to do so.
12: many antivirus producers promote their products through the fear of computer viruses. But these antiviruses often aren't effective.
7 0
3 years ago
Read 2 more answers
Grouper Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were
trasher [3.6K]

Answer:

The weighted-average interest rate used for interest capitalization purposes is 10.1%

Explanation:

This problem requires us to compute the weighted-average interest rate used for interest capitalization purposes. The wacc can be calculated in the following way.

          Loan Amount Outstanding                                    Weightage                                          (LOA)                                                                        (LAO/Total)

                     $ 868,933      (1,042,720/12*10)                 13.6%    

                     $ 2,039,800                                                32%

                     $ 3,462,500                                                54.4%

Total              $ 6,371,233

WAAC = 13% * 13.6% + 9% * 32% + 10% * 54.4%

WAAC = 10.1%

3 0
3 years ago
The economic order quantity (EOQ) deals with calculating the proper order size with respect to ____ costs and ____ costs.
Lera25 [3.4K]
The answer is C because you have to make sure you are within your budget
6 0
3 years ago
Cory Bash has been a private company for all of its business life. The owners long to expand their vision around the world, but
lora16 [44]

Answer:

1. No

2. The benefit would be in terms of profit though in the long run

Explanation:

When a business is established in a new environment or country, the initial investment might not result into profit not because the company is not well managed but because it is trying to recoup the costs associated with such investment.

Costs associated with investing in a new country includes but not limited to initial payment of staff salaries, office buildings, company registration fees and other administrative expenses.

The company would of course earn but such earnings would be used to augment cost initially expended towards it's establishment. The owners tend to benefit from the company's profit in the long run because most of the aforementioned costs would have been covered and the company also known in terms of the products or services it offers to the public.

4 0
3 years ago
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