Strategic Alternatives for Declining Industries

Declining Industry
An industry where growth is either negative or is not growing at the broader rate of economic growth. Reasons:
Evaporating consumer demands Depletion of natural resources Emergent of substitutes

Strategic alternatives in decline

Leadership
Aggressive marketing and pricing Acquiring competitors-increase market share Reducing competitors exit barriers Demonstrating strong commitments

Niche
Identify market segment for stable demand

Strategic alternatives in decline

Low-cost
Outsourcing functions Adding more distribution channel to achieve high volume Re-designing internal business processes

Quality Improvement and Product innovation

e.g. Technology based companies

 Harvest
Optimize cash-flow Reducing number of models Curtailing new investments

Quick Divestment

Thank You