Question

Although Mountaintop Electronics still sells its DVD players, a product in its decline stage, the investments made by the company on improving or marketing the product are very low. The company has allocated the least amount of human and financial capital to this department. which of the following strategies has Mountaintop Electronics adopted in this scenario? a. harvest strategy b. differentiation strategy c. maintain strategy d. consolidation strategy

Answer 1

a. harvest strategy

Step-by-step explanation:

Although Mountaintop Electronics eliminate the investment on DVD players. As new investment will not boost product revenue.

A harvest strategy involves this course of acction to maximize profits towards the end of a product's life cycle.

It is suitable for outdated products to reinvest profit in newer models or newer technologies.

The harving strategy is a normal business strategy as all products have a life cycle and when it is near the end the firm wisely decreases his investment on it and dedicates capital into more new and profitable product which benefit from the cash inflow