AgfaPhoto, a company in the traditional film photography business, recently filed for bankruptcy. AgfaPhoto is a division of Agfa-Gevaert Company. What should Agfa-Gavaert do with this division?

Question

Quizplus · Accepted Answer

Given that AgfaPhoto, a division of Agfa-Gevaert, has filed for bankruptcy, this indicates significant financial and possibly market position struggles. In such a scenario, considering product abandonment (D) might be the most viable option to cut losses and potentially refocus resources on more profitable or promising areas of the business. Expanding distribution, increasing prices, increasing promotion, or creating technological obsolescence without addressing the underlying issues that led to bankruptcy could further drain resources without guaranteeing a turnaround.

AgfaPhoto, a Company in the Traditional Film Photography Business, Recently