Which of the following companies is using a divesting strategy?
A) Juggernaut Bikes acquires new businesses in order to increase its market share.
B) To achieve a higher market share, LBD Inc. increases investments in advertising and promotion.
C) When sales of its clothing division decline, Blackstone sells the division to a competitor.
D) Getix Computers increases the price of its products in order to maximize short-term profits.
E) Harlow's market share remains steady over two years, and the firm decides to maintain its share at the current level.

Question

Quizplus · Accepted Answer

Blackstone is divesting, or selling off, its clothing division in response to declining sales, which is a divesting strategy. The other options describe growth or stability strategies, such as acquisitions, increased advertising, price increases, or maintaining the status quo.

Which of the Following Companies Is Using a Divesting Strategy