A hold strategy may prevent a firm from making investments that would help retain product relevance.

Question

Quizplus · Accepted Answer

A hold strategy involves maintaining the current product line and delaying investments in new products or technologies. While this can help cut costs, it also runs the risk of making the firm's products obsolete and losing relevance in the market. By delaying investments, the firm may miss opportunities to update or innovate their products to meet changing customer demands or preferences.

A Hold Strategy May Prevent a Firm from Making Investments