Question

In the decline stage, which of the following strategies involves

a reduction of investments in product support?
A) Exit Strategy
B) Harvest Strategy
C) Consolidate Strategy
D) Maintain Strategy

Answer 1

The strategy that involves a reduction of investments in product support during the decline stage of a product's life cycle is the Harvest Strategy.

Step-by-step explanation:

In the context of the product life cycle, the decline stage is a phase where the product's market demand and profitability begin to decrease. Companies must decide on a strategy to manage declining products. Among the given options, the strategy that involves a reduction of investments in product support is the Harvest Strategy. This approach aims to maximize short-term profits and cash flow by reducing costs, including investments in product support, without trying to stimulate sales growth. An Exit Strategy may indeed result in pulling the product from the market, but it is not highly focused on cost reduction prior to exit. A Maintain Strategy implies keeping the product going without significant changes, while a Consolidate Strategy could involve efforts to merge with other products or companies to retain a market presence. Therefore, the answer to the question is B) Harvest Strategy.