Presented below is a sample response to a question #B for the company American Entertainment, Inc. This is for guidance only. As stressed in class, each company and their situation is different and the answers to the final question will vary considerably.

B. What does this theory recommend for this company? Explain.

The company falls in the middle section of the matrix. I/E recommends hold and maintain strategies. These include market penetration and product development (David, 1999).

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