Competing in declining industries
The characteristics of declining industries include the following:
- Declining demand for products
- Pruning of product lines
- Shrinking profit margins
- Falling research and development advertisement expenditure
- Declining number of rivals as many are forced to leave the industry
For companies to survive the dynamic environment, it is necessary for them to:
- Measure the intensity of competition
- Assess the causes of decline
- Single out a viable strategy for decline such as leadership, liquidation and harvest.
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