Which of the following shakeout strategies requires a company to limit or decrease its investment in a business and to extract, or milk, the proceeds of its investment as much as it can?
A) Market concentration strategy
B) Share-increasing strategy
C) Cost-leadership strategy
D) Hold-and-maintain strategy
E) Harvest strategy

Question

Quizplus · Accepted Answer

The strategy described in the question is the harvest strategy, which involves reducing or limiting investment in a business and focusing on extracting the maximum possible value from existing assets. This may involve increasing prices, reducing costs, or selling off assets. It is often used when a business is in decline, and the company wants to maximize its return on investment before exiting the market.

Which of the Following Shakeout Strategies Requires a Company to Limit