Question
In the question below, few statements are given
depicting an issue or a problem. You have to assume everything in the statements to be true even if they are at variance from commonly known facts, and on the basis of the information given in the statements, decide which of the suggested courses of action logically follow(s) for pursuing. Statement: A leading smartphone company, TechNova, has seen a sharp decline in the sales of its newly launched high-end model. A detailed investigation revealed two key issues: 1. Customers are hesitant to buy the new model because its price is significantly higher than competing brands with similar features. 2. Retailers are also not actively promoting the new model because the company offers very low margins on each sale, making it unprofitable for them to push the product. Courses of Action: I. TechNova should launch attractive exchange and discount schemes to reduce the effective price for customers. II. TechNova should increase retailer margins on the high-end model to motivate them to promote it.Solution
The problem has two major causes: Customers find the price too high → affects demand. Retailers don’t promote the model because margins are low → affects supply and visibility. Course of action I reduces the effective cost for customers and directly addresses the price barrier. Course of action II increases retailer incentives and solves the promotion barrier. Both actions logically follow and help address the problem from both ends.
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