Which of the Following Is a Defensive Strategy That Often

question 3

Multiple Choice

Which of the following is a defensive strategy that often occurs in the late and mature stages of the product life cycle when growth potential is limited and competitive position is set?

• A)an optimize position strategy
• B)a vertical integration strategy
• C)an invest to improve position strategy
• D)an invest to grow strategy
• E)a new market entry strategy

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Definitions:

Demand Elasticity

A metric for assessing the reaction of a good's demanded quantity to its price adjustments.

Income Elasticity

A measure of how the demand for a good or service changes with a change in consumers' income.

Normal Good

A type of good for which demand increases when consumer income rises, and decreases when consumer income decreases.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.