Question : Case Study 3: Importance of Entrepreneurship Development
XYZ Electronics is a well-established company that has been manufacturing traditional electronic gadgets for decades. With changing consumer preferences, the demand for their products has declined. The management realized the need to innovate and cater to the growing market for smart devices. They invested in research and development to create cutting-edge smart gadgets, resulting in increased sales and market share.
Question:
How did XYZ Electronics respond to the changing market demands?
Option 1: By ignoring the market trends and continuing with traditional gadgets
Option 2: By investing in research and development for smart gadgets
Option 3: By shutting down the business
Option 4: By reducing the prices of their traditional gadgets
Correct Answer:
By investing in research and development for smart gadgets
Solution : The correct answer is (b) By investing in research and development for smart gadgets
Recognizing the decline in demand for traditional electronic gadgets and the growing market for smart devices, XYZ Electronics took the proactive approach of investing in research and development. This strategic decision enabled them to create cutting-edge smart gadgets, leading to increased sales and market share.
