Question

Tokyo Electronics is facing financial difficulties mainly due to losses incurred by its gaming division. As a consequence, it has decided to shut down operations of this division. Which of the following strategies has Tokyo electronics adopted? Concentration strategy Internal growth strategy External growth strategy Divestment strategy Diversification strategy

Answer 1

Disinvestment strategy

Step-by-step explanation:

Tokyo Electronics has adopted disinvestment strategy because of many reasons, for example: first, the gaming market is saturated and there are many competitors; second, the company need a great investment and it couldn't do it; third, the company has a too much varied products portfolio, generating strategical problems (production, sales, costs, product design, distribution channel). This situation made Tokyo Electronics focus on its core business to get better return on investment.