Directions: Read the given passage carefully to answer the following questions. Each question will have five alternatives as its answer. Choose the correct option as your answer.

Company X, once a leading player in India’s sustainable mobility sector, has recently faced a significant setback. The firm, which had earlier banked on the rising popularity of electric bicycles, is now grappling with a sharp decline in sales. According to the company's latest quarterly report, electric cycle sales have plummeted by nearly 40% compared to the same period last year. This downturn has severely impacted the company’s overall financial performance.

Several factors appear to have contributed to this decline. A surge in input costs, coupled with the withdrawal of government subsidies for electric two-wheelers, has led to increased retail prices. Consumers, particularly in rural and semi-urban areas, have begun to opt for more affordable alternatives, including traditional bicycles and low-cost motorbikes. Moreover, the company’s overdependence on urban markets meant that it failed to cut down on new marketing strategies, limiting its reach and visibility.

As a result, Company X has been forced to branch out its production volumes and reduce its workforce to contain operational expenses. The leadership has acknowledged that it failed to accurately read into changing consumer preferences and market signals. With mounting inventory and reduced cash flow, the company now faces the challenge of restructuring its business model and restoring investor confidence.

In a recent press conference, the CEO admitted that the company is at a critical juncture. “We must __________ our strategy and realign our products with what the market ________,” he said, indicating that a diversification plan is being drafted to recover lost ground. Analysts believe that unless Company X acts swiftly and innovatively, it risks losing its foothold in a rapidly evolving electric mobility landscape.