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During a recession, a high-end beverage producer facing strong competition in a saturated market has decided...

During a recession, a high-end beverage producer facing strong competition in a saturated market has decided to phase out all its flagship products and introduce a new line of second-label beverages at lower price points in reaction to its falling market share. Would this type of a reactive strategy receive its position? Why or why not?

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Strategy, at its essence, is about competing differently—doing what rival firms don't do or what rival firms can't do. This does not mean that the key elements of a company's strategy have to be 100 percent different, but rather that they must differ in at least some important respects. Refreshing its products completely during recession might improve the company's position in the market; however, as consumers tend to have lower disposable income during a recession there is no guarantee that these customers would purchase an all-new product line

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