Preparing for Declining Industries

If the firm can forecast industry conditions in the decline phase, it may be able to improve its position by taking steps during the maturity phase that greatly improve its position for decline; sometimes these moves cost little in terms of strategic position in maturity.

  • Minimize investments or other actions that will raise exit bar-riers from any of the sources outlined above.
  • Place strategic emphasis on market segments that will be fa-vorable under decline conditions.
  • Create switching costs in these segments.

Source: Porter Michael E. (1998), Competitive Strategy_ Techniques for Analyzing Industries and Competitors, Free Press; Illustrated edition.

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