When competitive position is strong and the market attractiveness is low,the firm's primary approach should be to:
A)invest to build.
B)build selectively.
C)manage for earnings.
D)protect and refocus.

Question

Quizplus · Accepted Answer

When the competitive position is strong but the market attractiveness is low, the firm's primary approach should be to protect its current position and refocus its strategy on areas where it can generate better returns. This may involve divesting unprofitable businesses or products and focusing on areas where the firm has a stronger competitive advantage. Managing for earnings may also be a short-term strategy to maintain financial stability, but it is not a sustainable approach for long-term success. Investing to build or building selectively may not be viable options if the market is not attractive enough to justify the costs and risks.

When Competitive Position Is Strong and the Market Attractiveness Is