Final answer:
To add value to a product under a trading up strategy, a company can use technological improvements to enhance quality and engage in mergers or acquisitions to increase market presence and efficiency.
Step-by-step explanation:
A company that employs a trading up strategy will add value to a product by implementing new technological advancements to increase the quality and output of its goods and by undertaking actions such as mergers and acquisitions to expand its market reach and efficiency.
By enhancing their product's quality through technological innovations, a company ensures that the product offers greater value to the consumer, potentially justifying a higher price point. Additionally, mergers and acquisitions can lead to economies of scale, more comprehensive product lines, improved market presence, and the elimination of duplicate services that can further reduce costs and increase the product's value proposition.