A company whose primary objective is to recoup development and commercialization costs as soon as possible and which withdraws from market when increasing competition puts pressure on margins is practising the _____ strategy.
A)niche penetration
B)skimming
C)mass-market penetration
D)defender

Question

Quizplus · Accepted Answer

The given scenario describes the skimming strategy where a company sets high prices initially to recover the high development and commercialization costs quickly. However, as the competition increases and puts pressure on margins, the company withdraws from the market. This strategy is commonly used in industries with high initial costs and a limited target market.

A Company Whose Primary Objective Is to Recoup Development and Commercialization