A highly attractive target market,in which a firm holds a medium strength position,becomes unattractive.What would be the most appropriate strategic focus for the firm in this case?
A)Move from invest to build,to manage for earnings
B)Move from invest to build,to divestment
C)Move from build selectively,to manage for earnings
D)Move from build selectively,to divestment

Question

Quizplus · Accepted Answer

When a highly attractive target market becomes unattractive and a firm holds a medium strength position, the most appropriate strategic focus shifts from investing to build (which implies growth and expansion strategies in attractive markets) to managing for earnings. This means the firm should focus on maximizing short-term profits and cash flow from the market rather than investing further for growth, given the market's decreased attractiveness.

A Highly Attractive Target Market,in Which a Firm Holds a Medium