Page 23 - PRODUCT
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Strategies at decline stage




                  i. Continuation Strategy :
                       Increasing the firm’s investment ( to dominate the market or

                       strengthen the competitive position )
                       Maintaining the firm’s investment level until the uncertainties about

                       the industry are resolved.




                  ii. Concentration Strategy :

                       Decreasing the firm’s investment level selectively, by dropping
                       unprofitable customer groups, while simultaneously strengthening the

                       firm’s investment in lucrative niches.
                       A company that is in unattractive industry but possesses competitive

                       strength should consider shrinking selectively.

                       A company that is in attractive industry and has competitive strength
                       should consider strengthening its investment






                          Shrink number of
                          outlets at certain
                              countries











               iii.Harvesting Strategy :

                    Making a short term profit towards the end of product life cycle.
                    Reducing spending on an established product in order to maximize

                    profits including investment made in the product and marketing

                    costs. By reducing these costs, the company hopes that the profits
                    from the product will increase until their inventory runs out.

                    The company can limit or eliminate capital expenses, such as the
                    purchase of new equipment needed to support the ending item.

                    Also, they can restrict spending on operations.
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