Businesses competing in stagnant or declining industries
Businesses competing in stagnant or declining industries must
a. resign themselves to performance targets consistent with the available market opportunities, emphasize cash flow and return-on-investment criteria as opposed to growth-oriented performance measures, and concentrate on drawing sales and market share away from weaker rivals (if they want to expand their market share)
b. pursue vertical integration and gain greater operating control over more stages of the industry's value chain
c. initiate deep price cuts to rejuvenate long-term demand and expand into the markets of foreign countries, especially emerging country markets
d. consider selling out and exiting the industry
e. steer a middle course between low-cost, differentiation and focusing and adopt a best-cost producer strategy aimed at the middle of the market sp
Solution Summary
The solution answers the multiple choice question below. No explanation has been given because the answer choice is self explanatory.
... c) mature/slow-growth, d) stagnant/declining, e) high ... in alcohol consumption and increasing competition from the ... is complicated for the companies to establish a ...
... Is the industry growing, becoming stagnant or declining... of customers is growing and the companies begin to ... profitable, there will be more competition because of ...
... c) mature/slow-growth, (d) stagnant/declining, or (e ... the newspaper is struggling to compete with Kindle ... Nichols, T. (2008) Dry Cleaning Business Franchises: Coin ...
...Competing in the Future. ... more to do with shoring up today's business rather than ... When faced with competitiveness problems like stagnant growth, declining margins ...
... for a certain commodity, they become stagnant in production ... 5 Businesses that previously enjoyed monopolies are forced ... products if they hope to compete in the ...
... is a plus for PepsiCo; competition - good substitutes ... lines expensive to maintain-stagnant declining market Opportunities ... com/2006/03/09/business/09soda.html? ...
... only take FedEx so far" with stagnant pricing, limited ... FedEx will face more serious competition overseas than ... as following the broad US economy's business cycle ...
... Many companies are willing ... More recently, output from Venezuela and Russia has been stagnant or falling ... of what we have today: there was competition for capital ...
... of the nation that are growing, stagnant, and declining... An area that is saturated with businesses of the same ... can limit the profitability of all competing firms ...
