Question

2. How might a retrenchment strategy and a penetration strategy be linked together?

Answer 1

Retrenchment strategy is method to reduce the business operations in an organization to reduce the cost of an organization. It reduce the financial burden of an organization. Penetration strategy is used to offer a new product with low cost to generate high profit percentage. It can be achieved by leaving the non profit business operations and adopt the new product instead of non profit business. It increase the financial demand of organization and financial benefit.