Defensive Strategies - Defensive core strategy 2: optimise position

4 important questions on Defensive Strategies - Defensive core strategy 2: optimise position

What happens when optimising a position?

The combination of high volume, low margins and reduced marketing and sales expenses result in maximum marketing profits over the PLC.

When does the optimisation of the position happen?

In the late-growth and mature stages of its PLC.

What could a company do to maximise its NMC?

  • Focus on the margin-volume rather than the price-volume.
  • Reduce marketing expenses in order to grow NMC.
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

When should a company reduce its market focus as part of optimising the position?

  • When a company does not have the resources to invest in protecting its current share position.
  • When more profit can be derived from a narrower/more selective market.

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo