Final answer:
The managers of Arrow exploring new demographic markets to sell their current products is an example of a market expansion strategy. This strategy aims to increase sales by tapping into new markets and is influenced by market forces that encourage non-discriminatory practices for broader customer reach and talent retention.
Step-by-step explanation:
The managers of Arrow, an American retail chain, reviewing new demographic markets to sell the firm's current products, is an example of market expansion strategy. This involves analyzing potential customer bases and demographic shifts to identify new opportunities for selling existing products. Such strategic moves are commonplace in business concepts, especially when addressing the matters of market saturation in current areas or looking to increase sales and profits by tapping into previously unexplored markets.
Businesses, like the hypothetical ones described, often respond to market forces when making decisions about non-discriminatory practices. Market forces can provide incentives to be less discriminatory, such as broader customer reach, improved brand reputation, and avoidance of talent loss due to unfair wage practices. In essence, inclusion not only becomes a moral imperative but also a strategic business advantage in a competitive market.
It is important to note that firms must compete for market share and such competitive strategies might involve repositioning amidst direct competitors, as described in the scenario with Firm A and Firm B. Eventually, decisions made to appeal to a broader consumer base or ensure a skilled workforce are driven by the desire to enhance market position, customer satisfaction, and operational efficiency.