What strategy did Limeria Inc. use by focusing on enamel paints after incurring losses?

Focusing on enamel paints after experiencing losses is indicative of a retrenchment strategy. This approach typically involves an organization narrowing its focus to improve profitability and stabilize the business. By concentrating on a specific product line like enamel paints, Limeria Inc. can streamline its operations, allocate resources more efficiently, and potentially regain a competitive edge in the market. The goal is to recover from the previous financial setbacks by honing in on core strengths or profitable segments rather than pursuing expansion or diversification at this time.

In contrast, a stability strategy would imply maintaining the current strategy without significant changes, which does not address the need for recovery from losses. A growth strategy involves expanding the business through increased product offerings, market penetration, or new markets, which might further strain resources following recent losses. An acquisition strategy entails purchasing other companies to broaden the business scope, which would also not be appropriate when focusing on recovery. Therefore, the retrenchment strategy is the most aligned with Limeria Inc.'s decision to concentrate on a specific area in response to its financial challenges.