Apple decides to reallocate resources by curtailing online ad budgets and investing heavily in scratch-resistant Sapphire,the material that differentiates iPhone from competitive brands.What is MOST LIKELY the reason for reallocation of resources?
A) Making critical value chain activities less effective
B) Supporting the new strategic initiative of the brand
C) Signalling commitment to online sales of the brand
D) Signalling commitment to offline sales of the brand
E) Impeding the efforts of rivals to hoard Sapphire

Question

Quizplus · Accepted Answer

The reallocation of resources, by curtailing online ad budgets and investing heavily in scratch-resistant Sapphire, suggests that the brand is supporting a new strategic initiative. The decision to invest in Sapphire indicates that the brand is trying to differentiate itself from its competitors, and this could be a significant part of the new strategic initiative. Therefore, option B is the most likely reason for the reallocation of resources.

Apple Decides to Reallocate Resources by Curtailing Online Ad Budgets