Competitive Strategy in Decline Industries.

Introduction
Strategic Analysis, Declining industries. In

decline industry growth is either negative or is not growing at the broader rate of economic growth. There are many reasons for a declining industry, consumer demand may be steadily evaporating, the depletion of a natural resource may be occurring or there may be the emergent substitutes because of technological innovation.
Example: Railroad Industry

Structural Determinants of Competition in Decline

Conditions of Demand Uncertainty Rate and Pattern of Decline Structure of Remaining Demand Pockets

Barriers
Information barriers Managerial or Emotional Barriers

Government And Social Barriers

Barriers (cont...)
Exit barrier Fixed cost barrier

Strategic exit barrier

Strategies for Declining Industry

Leadership
Niche Harvest Divest Quickly

Has Strengths Relative To Competitors for Remaining Pockets

Lacks Strengths Relative to Competitors for Remaining Pockets

Favourable Industry Structure for Decline

Leadership or Niche

Harvest or Divest Quickly

Unfavourable Industry Structure For Decline

Niche or Harvest

Divest Quickly

Firms Strategic Needs to Remain In the Business

Portfolio Analysis: BCG Matrix

Product Life Cycle