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A deliberate strategy is best exemplified by a(n)

a) popular downtown theater that has been staging plays and showing films decides to begin booking rock and roll acts.
b) airline company that cuts frills in order to cope with increasing fuel prices.
c) IT firm that trims jobs during a recession.
d) smartphone manufacturer that divests its tablet production branch after not gaining market share.
e) online jewelry reseller that discontinues its line of turquoise rings due to lack of demand.

1 Answer

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Final answer:

A deliberate strategy is best shown by an airline company cutting frills to handle increasing fuel costs. This action is purposeful, directed at maintaining market position despite external pressures. It is an example of a company making considered changes in its operations to address economic challenges.

Step-by-step explanation:

A deliberate strategy is exemplified by option (b): an airline company that cuts frills in order to cope with increasing fuel prices. This is a clear example of a company formulating a specific plan to address the economic challenge of rising costs in their industry. This action is premeditated and aimed at maintaining the company’s competitive edge and profitability in the face of external pressures. By reducing unnecessary expenses, the airline responds strategically to maintain its market position and safeguard its business interests. The approach is deliberate as it involves analyzing the situation and implementing targeted measures.

Comparatively, commercial theatre, known for its professional productions aimed at generating profit, operates under similar economic principles. Here, the focus on market research and marketing strategies, along with attracting investors, also reflects a deliberate strategy designed to ensure success in a competitive industry.

In a different vein, when a large incumbent airline company aggressively slashes prices to push a new entrant out of the market and later raises prices after the threat is eliminated, this too demonstrates a deliberate strategy. Such a move is calculated to secure a dominant position in the market and is an example of an incumbent firm exercising its power to discourage competition.

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