In the context of grand strategies, what does a liquidation strategy mean?

A liquidation strategy pertains specifically to the process of selling off a company's assets in order to pay creditors, particularly when a business is facing financial distress or insolvency. This approach is implemented when it becomes evident that the company cannot continue its operations profitably or cannot meet its financial obligations. The primary goal of liquidation is to maximize the return for creditors and investors by converting assets into cash.

This strategy is often a last resort, undertaken when other options for restructuring or recovery have been exhausted. In contrast to other grand strategies such as acquiring new technologies, modifying existing product lines, or entering new geographic markets—which are geared towards growth and sustainability—liquidation emphasizes the winding down of business activities. It reflects a strategic decision aimed at mitigating losses rather than pursuing expansion or innovation.