Virtual Inc.,a manufacturing company,has recently entered into the cell phone industry.This industry is characterized by rapid technological innovations.Which of the following is an implication for Virtual Inc.?
A) The life cycle of its cell phones will be very long.
B) It will face rapid product obsolescence.
C) It will face low market segmentation in the cell phone industry.
D) It will face lower need for product differentiation.

Question

Quizplus · Accepted Answer

Rapid technological innovations in the cell phone industry lead to quick product obsolescence, which means that Virtual Inc. will have to constantly innovate and upgrade its products to stay competitive. The life cycle of its cell phones is likely to be short, and it will need to differentiate its products to stand out in a crowded market. Low market segmentation is unlikely given the variety of consumer preferences and needs for cell phones.