Grin logo
en de es fr
Shop
GRIN Website
Publish your texts - enjoy our full service for authors
Go to shop › Business economics - Business Management, Corporate Governance

Strategic Options in a declining industry environment

Wettbewerbsstrategien in stagnierenden und fallenden Industrien

Title: Strategic Options in a declining industry environment

Seminar Paper , 2012 , 20 Pages , Grade: 1,0

Autor:in: Markus Karmann (Author)

Business economics - Business Management, Corporate Governance
Excerpt & Details   Look inside the ebook
Summary Excerpt Details

At some point in time, business students around the world will most likely be confronted with the famous product and industry life cycle. This tool is mainly used as a marketing instrument. It offers advertising and investment directions for each of the three to five stages of the cycle. Everything in this theory seems obvious and clear, until the “decline” stage of the cycle is reached. The question is, is there really only one option, namely to harvest and then divest, in the last phase of the life cycle? Is the decrease in revenues and profits inevitable?
The past shows that this is not necessarily the case. Some companies actually did generate profits and proved to be quite successful in a difficult market environment. Take for example the fountain pen maker Mont Blanc. The market for fountain pens has been declining for decades due to technological change (invention of typewriters and computers) and also consumer preferences. However, Mont Blanc has set up a selective shrinkage (“niche”) strategy by attracting high-income professionals and promoting their fountain pens as a luxury good. As a result, the company has achieved stable revenues and high margins within a declining industry (Grant 2010).
In the following, this paper will examine what a declining industry is, what characteristics a declining industry shows and what strategic options companies within such an industry environment have.

Excerpt


Table of Contents

  • Introduction
  • Declining industries: characteristics and reasons
  • Strategic options in a declining industry environment
    • Factors influencing the attractiveness of a declining industry.
    • Strategic options for companies in declining industries
  • Trajectories of industry change
  • Summary and conclusion

Objectives and Key Themes

This paper explores the concept of declining industries and the strategic options available to companies within such environments. It aims to challenge the conventional wisdom that the only viable option in the decline stage of the industry life cycle is to harvest and divest.

  • The characteristics and reasons behind declining industries.
  • Factors influencing the attractiveness of a declining industry.
  • Strategic options for companies in declining industries.
  • Trajectories of industry change.
  • The potential for success in a declining industry environment.

Chapter Summaries

The first chapter introduces the concept of the industry life cycle and challenges the assumption that decline inevitably leads to divestment, highlighting examples of companies that have thrived in declining industries. The second chapter delves into the characteristics and reasons behind declining industries, outlining the stages of the industry life cycle and the factors contributing to decline.

Keywords

Declining industries, industry life cycle, strategic options, competitive advantage, market share, niche strategy, harvest strategy, divestment, trajectory of industry change.

Excerpt out of 20 pages  - scroll top

Details

Title
Strategic Options in a declining industry environment
Subtitle
Wettbewerbsstrategien in stagnierenden und fallenden Industrien
College
Reutlingen University
Grade
1,0
Author
Markus Karmann (Author)
Publication Year
2012
Pages
20
Catalog Number
V193113
ISBN (eBook)
9783656189077
ISBN (Book)
9783656189510
Language
English
Tags
Michael Porter Industry Life Cycle Declining Industries stagnierende Industrien Produktlebenszyklus Harrigan Wettbewerbsstrategien Exit Barriers Environmental attractiveness Industry attractiveness Nischenmarkt Niche strategies competitive strategies
Product Safety
GRIN Publishing GmbH
Quote paper
Markus Karmann (Author), 2012, Strategic Options in a declining industry environment, Munich, GRIN Verlag, https://www.grin.com/document/193113
Look inside the ebook
  • Depending on your browser, you might see this message in place of the failed image.
  • https://cdn.openpublishing.com/images/brand/1/preview_popup_advertising.jpg
  • Depending on your browser, you might see this message in place of the failed image.
  • Depending on your browser, you might see this message in place of the failed image.
  • Depending on your browser, you might see this message in place of the failed image.
  • Depending on your browser, you might see this message in place of the failed image.
  • Depending on your browser, you might see this message in place of the failed image.
  • Depending on your browser, you might see this message in place of the failed image.
  • Depending on your browser, you might see this message in place of the failed image.
Excerpt from  20  pages
Grin logo
  • Grin.com
  • Payment & Shipping
  • Contact
  • Privacy
  • Terms
  • Imprint