Captive Strategy – Is the giving up of independence in exchange for security. A company with a weak competitive position may not be able to engage in a full blown turnaround strategy. The industry may not be sufficiently attractive to justify such an effort from either the current management or from investors. Nevertheless a company in this situation faces poor sales and increasing losses unless it takes some action. Management desperately searches for an “angel” by offering to be a captive company to one of its larger customers in order to guarantee the company’s continued existence with a long term contract. In this way, the corporation may be able to reduce the scope of some of its functional activities, such as marketing, thus reducing costs significantly.
Latest posts by BMS Team (see all)
- Meterdown Annual Festival is back with its 7th edition – Starts today! - January 16, 2020
- Tybms sem 6 results 2019 declared on 19th June 2019 - June 19, 2019
- TYBMS Sem 6 Results 2019 Update from BMS khabri! - June 15, 2019