In 2001, Compaq Computer CEO Michael Capellas announced that his company would concentrate on selling software and services instead of hardware. Suppose WorldCorp passes up the chance to buy software from Compaq because it has been a long time customer of IBM. As described here, WorldCorp's decision is based on:
A) economies of scale.
B) switching costs.
C) loose bricks.
D) access to distribution channels.
E) product differentiations.
Answer: A