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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.