Question

Kimberly-Clark has seen one of its product lines decline over the years. The company decides the product is taking up too much resources, and it would be better to ​withdraw all marketing support for the product. This strategy is known as:

Answer 1

Divesting

Step-by-step explanation:

Divesting, in business, is the act of cutting down the size of the operation of a company, selling off some of its subsidiaries or eliminating a part of its business in order to enable efficiency and maximization of profit in the face of a shortfall in meeting its social or financial goals.

The strategy employed by Kimberly-Clark can be referred to as a divestment strategy as Kimberly-Clark withdraws all marketing support for the product since its financial goals are not being met. Instead of investing more money in the marketing support of the product, Kimberly-Clark thought it wise to divest by withdrawing marketing support for the product.

Answer 2

Divestment

Step-by-step explanation:

Divestment is usually done when that subsidiary asset or division is not performing up to expectations. Companies can choose to deploy this strategy to satisfy either financial, social or political goals.

It involves a company selling its assets, often to improve its value and obtain higher efficiency.

The action of the company, withdrawing all marketing support for the product can be regarded to as divestment