When a company approaches market share growth under a hold strategy,
A)the company aims to hold its market share in the industry, even at the expense of short-term earnings and cash flow.
B)the company seeks to maintain its current market share and generate a reasonable return on investment.
C)the company seeks market share growth by purchasing companies exiting the market.
D)the company focuses on short-term profits and cash.

Question

Quizplus · Accepted Answer

When a company approaches market share growth under a hold strategy, it seeks to maintain its current market share and generate a reasonable return on investment. This means the company is not necessarily focused on short-term profits or cash, but rather on maintaining its position in the market while still generating a reasonable return. Unlike a market penetration strategy, where the company aims to increase its market share through aggressive pricing or promotions, a hold strategy is more conservative and aims to maintain stability in the market.

When a Company Approaches Market Share Growth Under a Hold