Market saturation is one possible reason for firms to abandon their concentration strategies.

Question

Quizplus · Accepted Answer

Market saturation occurs when a market is no longer able to absorb new products, and demand has been satisfied. When a market becomes saturated, it becomes difficult for firms to continue to grow through concentration strategies, and they may choose to diversify their offerings or abandon the market altogether. Therefore, market saturation can be a reason for firms to abandon their concentration strategies.

Market Saturation Is One Possible Reason for Firms to Abandon