When a firm uses a "harvesting" strategy in the decline stage of the product life cycle, it maintains the firm's investment level until the uncertainties about the industry are resolved.

Question

Quizplus · Accepted Answer

A "harvesting" strategy involves reducing the firm's investment in a product to a minimum to maximize short-term profits and cash flow as the product goes through the decline stage, rather than maintaining investment levels.

When a Firm Uses a "Harvesting" Strategy in the Decline