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

Question

Quizplus · Accepted Answer

The strategy mentioned in the question, of a systematic phased withdrawal from a declining industry, while extracting as much value as possible during the period, is an example of a harvest strategy. This strategy involves reducing investment in the declining industry, minimizing costs, and maximizing short-term cash flow and profits. The other options - niche, expansion, and divestment - do not match the described strategy.

Firms in a Declining Industry That Engage in a Long