When large companies can no longer defend their full territory, they can launch a ________ defense where they give up weaker markets and reassign resources to stronger ones.
A) contraction
B) preemptive
C) flank
D) mobile
E) position

Question

Quizplus · Accepted Answer

The term "contraction" refers to a defensive strategy where a company gives up weaker markets and focuses its resources on stronger ones in order to defend its core business. This approach is often taken when a company is facing financial pressures and needs to streamline its operations or when it is unable to compete effectively in certain markets. The goal of contraction is to strengthen the company's core business by focusing on its most profitable segments and reducing costs in less profitable areas.

When Large Companies Can No Longer Defend Their Full Territory