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According to the author, smaller companies are better suited to pursue DI because they can accommodate lower margins in a way that the larger companies' policies would never allow themselves to do.
Option A is incorrect. The passage never mentions about the quality of the products.
Option B is incorrect. The passage never compares the quality of the trained workforce in both the cases.
Option D is incorrect. The new markets prefer start ups, not because their products are cheaper, but because their innovations are radically different from the existing products in the marker.
Option C is the view of the author of the passage. Hence, this is the correct answer.