A firm that is plagued with overcapacity, intense competition, or changing wants would do better if it pursues ________ as its major objective.
A) market skimming
B) product-quality leadership
C) survival
D) profit maximization
E) market penetration

Question

Quizplus · Accepted Answer

When a firm is struggling with overcapacity, intense competition or changing market wants, its primary objective becomes survival. The business must focus on staying afloat, rather than pursuing aggressive strategies like market skimming, profit maximization, or product-quality leadership. Market penetration may also be difficult in such a situation, as the market may be saturated with too many players already. Therefore, the best choice in this scenario is to ensure that the firm can continue to operate and weather the challenging business environment.

A Firm That Is Plagued with Overcapacity, Intense Competition, or Changing