Question

Firms in a declining industry that engage in a long, systematic phased withdrawal from the industry, extracting as much value as possible during the withdrawal period, are following a(n) ________ strategy.

A) niche
B) expansion
C) divestment
D) harvest

Answer 1

Firms in a declining industry that engage in a long, systematic phased withdrawal from the industry, extracting as much value as possible during the withdrawal period, are following a harvest strategy.

Step-by-step explanation:

Firms in a declining industry that engage in a long, systematic phased withdrawal from the industry, extracting as much value as possible during the withdrawal period, are following a(n) harvest strategy.

A harvest strategy is employed when a firm decides to gradually exit or withdraw from a declining industry. The goal is to maximize the value extracted during the withdrawal period, such as by reducing costs, selling off assets, or streamlining operations.

For example, a company in the declining print media industry may implement a harvest strategy by shrinking its operations, cutting costs, and focusing on generating as much profit as possible from existing assets and customers.