Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is high and the competitive position is strong?
A. It should protect existing strengths and invest to improve position only in areas where risk is low.
B. It should defend its current position and stop all further investments.
C. It should sell when possible to maximize cash value and cut fixed costs in the meantime.
D. It should invest more to grow at a maximum rate and concentrate on maintaining strengths.
Answer (2)
When both market attractiveness is high and competitive position is strong, the best strategy for a firm is to invest more to grow at maximum rate while maintaining strengths. This approach maximizes growth potential and ensures continued competitive advantage. Reactive strategies are less beneficial in such favorable circumstances. ;
When market attractiveness is high and competitive position is strong, the best strategy for a firm is to invest to grow at maximum rate while maintaining strengths. This proactive approach allows firms to capitalize on favorable conditions and enhance their market share. Thus, the chosen option is D.
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