Question
Mark is the CFO of a company that manufactures air conditioners and refrigerators. Themanagement wants to diversify its list of product offerings and therefore has
Mark is the CFO of a company that manufactures air conditioners and refrigerators. Themanagement wants to diversify its list of product offerings and therefore has asked the board ofmembers and senior management to suggest a project plan. One of their suggestions was tomanufacture smart televisions. Mark believes that if the company invests in this new projectplan, it will not be able to make sustainable profits for long. Which of the following statementssupports Mark's argument?
A) Market segmentation is minimal for the consumer electronics market.
B) The rate of product obsolescence is the lowest for televisions when compared withother consumer electronics and large home appliances.
C) The time between the television's introduction in the market and its replacement witha next-generation television is 12 to 24 months.
D) The product life cycle for televisions in the market is extremely long, about 10 to 12years.
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