Explain How Firms Can Use Reverse Positioning and Breakaway Positioning

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The Answer is Reverse positioning and breakaway positioning are two strategies that firms can use when faced with the maturity phase of the industry life cycle.

Reverse positioning involves redefining the product or service in a way that challenges the existing norms and expectations within the industry. This can involve stripping away certain features or benefits that are typically associated with the product or service, or even repositioning the product for a completely different target market. By doing so, the firm can create a new niche for itself within the market and differentiate itself from competitors.

Breakaway positioning, on the other hand, involves introducing a completely new and innovative product or service that disrupts the existing market. This can involve leveraging new technologies, creating a new business model, or offering a completely different value proposition to customers. By doing so, the firm can break away from the traditional norms of the industry and create a new market space for itself.

In the maturity phase of the industry life cycle, competition is often intense and market saturation can lead to stagnant growth. By using reverse positioning, firms can differentiate themselves from competitors and appeal to a new segment of customers who are looking for something different. Similarly, breakaway positioning allows firms to create new opportunities for growth by introducing innovative products or services that can redefine the industry.

Overall, both reverse positioning and breakaway positioning can help firms navigate the challenges of the maturity phase and find new avenues for growth and success within the industry life cycle.

Explain How Firms Can Use Reverse Positioning and Breakaway Positioning

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Explain How Firms Can Use Reverse Positioning and Breakaway Positioning

Essay

Correct Answer:Answered by ExamLex AIShow Answer

Correct Answer:
Answered by ExamLex AI