Nokia is a cell phone brand that offers digital cameras as part of its cell phone products. It is now in direct competition with camera brands such as Canon and Sony, and has become the world's largest seller of cameras. This is an example of:
A) envelopment.
B) product customization.
C) market diversity.
D) product development.
E) market innovation.

Question

Quizplus · Accepted Answer

Envelopment occurs when a company enters a market with a product that encompasses features of another market, thereby putting it in direct competition with companies in that market. In this case, Nokia, by integrating digital cameras into its cell phones, competes directly with traditional camera brands like Canon and Sony.

Nokia Is a Cell Phone Brand That Offers Digital Cameras