What strategy did Chimera Inc. adopt to stop its declining profitability by focusing on specialty chemicals?

Chimera Inc.'s decision to focus on specialty chemicals reflects a retrenchment strategy, which is designed to address declining profitability by consolidating resources and refocusing the organization's efforts. This strategy often involves reducing the scale of operations or divesting from certain areas to streamline and strengthen core business segments.

By concentrating on specialty chemicals, Chimera is strategically narrowing its focus to a potentially more profitable niche where it can optimize resources, enhance product quality, and possibly reduce competition within that specialized market. This can lead to improved operational efficiency and repositioning of the company, ultimately aiming to return to profitability.

This approach contrasts with a growth strategy, which would typically involve expanding operations or entering new markets, or an acquisition strategy, which centers on buying other companies to enhance market share. Additionally, a stability strategy would imply maintaining current operations without substantial changes, which would not be effective in addressing declining profitability. Therefore, the retrenchment strategy aligns with the objective of reversing a trend of diminishing profits through concentrated effort on a specific area of expertise.