Figure 1.
Consider Figure 1. above. A Florida-based flashlight company has been extremely
successful due in part to the number of hurricanes in Florida that result in a loss of
power. The firm is thinking of expanding its product offerings to include other
emergency supplies such as generators and survival kits. Before going ahead with this
decision, there were several factors that had to be taken into consideration: (1) The firm
has a great reputation with its flashlights and doesn”t want to ruin it. (2) Its physical
plant could be refitted relatively easily to make small generators, but it would be rather
costly. (3) It would have to rely on another firm to manufacture and package the
survival kits. (4) Although there are nine named hurricanes scheduled for the upcoming
year, no one really can predict what will happen. The need to rely on another company
to supply the survival kits would fall in which quadrant(s) of the SWOT analysis grid?
a. “A”
b. “B”
c. “C”
d. “D”
e. “C” and “D”
Answer:
The Apple iPhone was introduced at an initial price of $600. People waited in line
overnight so they could be one of the first to own this unique smartphone. Which
pricing strategy did Apple use to help recoup its research and development costs for the
smartphone?
a. penetration pricing