Triad Systems is a maker of computer peripherals. The firm's compact disc (CD) drive brand
was once the highly sought after for its durability and low costs.
However, with the introduction
of flash drives and other faster memory storage technologies, the CD drive market has declined
and almost all of Triad's competitors in the market have discontinued production of CD drives.
Triad Systems is possibly the lone seller of CD drives today. However, considering the fact that
most of the support software for technological products such as mobile phones and operating
systems are distributed in CD form, there are still users who buy CD drives. Which of the
following strategies would prove most advantageous to Triad Systems?
A) Triad should discontinue distribution through low value-added channels such as mail
order and telephone sales.
B) Triad should adopt an intensive distribution strategy involving multiple channels to boost
sales of the declining product.
C) Triad should raise prices of the CD drives as there is no acceptable substitute to its
product in the market.
D) Triad should develop product variants, such as CD drives with USB slots, to extend the
life cycle of the product.
C
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