If a firm has the resources to serve a stable pocket of demand in a declining industry, then it should pursue a __________ strategy.
A) harvest
B) product development
C) product proliferation
D) niche
E) divestiture

Question

Quizplus · Accepted Answer

A niche strategy focuses on serving a small, specific target market with specialized products or services. In a declining industry, there may still be a stable pocket of demand that a firm can serve effectively by tailoring their offerings to meet the specific needs of that market. This allows the firm to avoid direct competition with larger players in the industry and potentially increase profitability by charging higher prices for specialized offerings. Harvest and divestiture strategies are typically used in industries where there is little or no growth potential, while product development and proliferation strategies are focused on expanding a firm's offerings to new markets or customers.

If a Firm Has the Resources to Serve a Stable