Strategic Options in a declining industry environment

Wettbewerbsstrategien in stagnierenden und fallenden Industrien

Business & Finance, Management & Leadership, Management
Cover of the book Strategic Options in a declining industry environment by Markus Karmann, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Markus Karmann ISBN: 9783656189077
Publisher: GRIN Publishing Publication: May 11, 2012
Imprint: GRIN Publishing Language: English
Author: Markus Karmann
ISBN: 9783656189077
Publisher: GRIN Publishing
Publication: May 11, 2012
Imprint: GRIN Publishing
Language: English

Seminar paper from the year 2012 in the subject Business economics - Business Management, Corporate Governance, grade: 1,0, Reutlingen University, language: English, abstract: 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.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Seminar paper from the year 2012 in the subject Business economics - Business Management, Corporate Governance, grade: 1,0, Reutlingen University, language: English, abstract: 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.

More books from GRIN Publishing

Cover of the book Canadian foreign policy after the Westminster Statute of 1931 -The shift from British hegemon to an American one by Markus Karmann
Cover of the book Etablierung und Evaluierung neuer Konzepte zur Optimierung der Radiojodtherapie by Markus Karmann
Cover of the book South Asian American Literature - Comparing Bharati Mukherjee's 'The Management of Grief' and Meera Nair's 'Video' by Markus Karmann
Cover of the book The Ku Klux Klan in American literature and films: From Thomas Dixon's 'The Clansman' to contemporary KKK novels and movies by Markus Karmann
Cover of the book Does the Latest German Anti-Smoking Law Affect the Restaurant Behaviour of the Berlin People? by Markus Karmann
Cover of the book The Doha Agreement for Lebanon by Markus Karmann
Cover of the book Sampling Methods by Markus Karmann
Cover of the book An investigation of the effects of taxes on work decisions on the example of the WFTC in the UK by Markus Karmann
Cover of the book Is the acquisition of a first grammar guided by an innate, grammar-specific device? by Markus Karmann
Cover of the book The development of community languages and the role of Ethnolects in Australia by Markus Karmann
Cover of the book Environmental issues. Tourism in Kenya by Markus Karmann
Cover of the book Auctions - Theory and practical application by Markus Karmann
Cover of the book Hegemonic Stability Theory: The Rise and Fall of the US-Leadership in World Economic Relations by Markus Karmann
Cover of the book Stock option programmes as a value orientated management instrument by Markus Karmann
Cover of the book Consumer Research: Literatur Review, Statement Analysis and Focus Groups by Markus Karmann
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy