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Monday, 17 August 2015
Excellent Strategies for Businesses in a Declining Industries
Hello! It is common knowledge that some industries are declining, if your business happens to be in a declining industry, this are the strategies you should apply
* You can go after a market segment (niche) in the industry. A niche that you know will offer stability and you know other firms will not invade. Then dominate the niche.
*Dominate the industry, this can be achieved by acquiring competitors and motivating them to exit the industry. Once a dominant role is achieved , greater profit will be enjoyed.
*An harvesting strategy could be applied, a situation where you avoid any additional investments and maximize income from existing assets. this could be done by raising prices of products (goods and services) and reducing costs. However, the harvesting strategy may be challenging because it could lead to a strong competition which could cause your business adverse results, it could also demotivate your employees if they realise the business is operating in a way that portrays no long term plans.
* When it really seems like the industry is not going to take another turn, then the best advise will be to divest before the industry reaches a dead end.