Question

Digitec Company has recently decided to design and manufacture a laptop that retails for under $50, in an effort to make IT available to people in places like rural Africa and rural India. This is known as which of the following types of strategy?a. Bottom of the pyramid strategyb. Skimming the barrel strategyc. Cream of the crop strategyd. Top of the peak strategye. Base price strategy

Answer 1

Answer:

The answer is: A) Bottom of the pyramid strategy.

Explanation:

In a bottom of the pyramid strategy a company develops new products or services that target the lower class customers in a market or are designed for  the poorest regions or countries.

Digitec Company developed a very cheap laptop and will sell it on extremely poor areas. Usually a product developed specifically for this type of strategy wouldn´t be able to sell well in a richer market. For instance, not very many people would buy a $50 laptop in the US or Europe, since it probably doesn´t have the same technical specs as the rest of the competition.