An expansionist strategy in regard to capacity is best characterized by
A) reducing the risks of overly optimistic demand forecasts.
B) expanding only when others do.
C) emphasizing flexibility and quality while foregoing the larger market share of the lowest-cost producers.
D) using capacity to increase a firm's market share or to act as a form of preemptive market.

Question

Quizplus · Accepted Answer

An expansionist strategy focuses on using capacity to increase a firm's market share or to act as a form of preemptive market. This involves investing in additional capacity to meet anticipated future demand and to gain a competitive advantage. Emphasizing flexibility and quality while foregoing the larger market share of the lowest-cost producers is more characteristic of a differentiation strategy. Reducing risks associated with demand forecasts can be a consideration in any strategy, while expanding only when others do is a reactive approach rather than a proactive strategy.

An Expansionist Strategy in Regard to Capacity Is Best Characterized