If a firm invests in continuous innovation and willingly cannibalizes its existing products with more advanced products,the firm can
A) lose a significant number of customers.
B) introduce the next generation product while continuing to reap profits from the current product.
C) prevent competitors from achieving a significant technological gap.
D) just use deployment as a mechanism to earn revenues from its innovations.

Question

Quizplus · Accepted Answer

By investing in continuous innovation and willingly cannibalizing its existing products, a firm can prevent competitors from achieving a significant technological gap, as it stays ahead in the market with more advanced offerings.

If a Firm Invests in Continuous Innovation and Willingly Cannibalizes