Page 23 - PRODUCT

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.