Bankruptcy is a leading and innovative strategy that is used by most of the organizations to make them stable and effective one. This is a strategy used by various organizations in order to make it stable, effective and strong. Any organization if facing declines in sales and revenue, this strategy is thus applied in order to overcome any loss and to reverse the declining situation of the firm accordingly.
This is termed as a corporate level strategy with the help of which sales are cut down in order to overcome the losses faced by the firm and to make it strong enough to face any kind of future problems. This is thus termed as an effective and innovative strategy that helps in re designing and re structuring the financial position of any firm and it helps in making the firm strong enough to gain profits in the long run.
Michael Moesgaard Andersen, Flemming Poulfelt (2006), "Discount business strategy: how the new market leaders are redefining business strategy", John Wiley & Sons, pg 306
Pearce, "Strategic Management: Formulation, Implementation And Control", Tata McGraw-Hill