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MINI-CASE
Coller Inc.is an American firm that manufactures flat panel LCD computer monitors.The firm has a 5% share of a 2 million unit market.The firm's marketing department calculates that its acquisition cost is $13 million and retention costs is $5 million.The market for flat panel LCD computer monitors is in the late growth stage of the product life cycle,and Coller currently sells its product for $2,000 and experiences variable costs per unit of $1,600.
-Mini-Case Question.Coller Inc. ,because of a weak competitive advantage,is unable to produce desired levels of performance,and considers using a strategic market plan that allows it to exit the market slowly.The firm decides to improve its short-run performance by reducing marketing and sales expenses and systematically raising prices.In this example,Coller Inc.is most likely to be using which of the following defensive core strategies?
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