Which strategy refers to repositioning the organisation within the market for competitive advantage?

• A. Retrenchment - doing same as before but cutting costs
• B. Turnaround - repositioning within the market for competitive advantage
• C. Divestment - sale externally of part of the business or closing an area down
• D. Liquidation - assets sold to buyers

Answer: (B)

Repositioning the organisation within the market to gain competitive advantage is a turnaround strategy. A turnaround focuses on reversing poor performance by changing how the business competes—adjusting the product or service mix, entering or targeting different markets, refining the value proposition, and sometimes restructuring costs—to restore performance and strengthen the competitive position.

Retrenchment, by contrast, aims to stabilise by cutting costs or narrowing scope without changing the overall market stance. Divestment involves selling off a part of the business or exiting a line, which shifts strategy but isn’t necessarily about repositioning within the market. Liquidation means selling assets to wind up the business, not pursuing renewed competitive advantage.