Decline phase strategy
This is the last phase of the life cycle of the product. It is characterized by a clear decline in sales and declining revenue as a result of the emergence of a number of substitutes, saturation of the market or changes in fashion. In this phase, companies limit production, distribution and sale activities. They also use seasonal sales with a significant decrease in prices.
The dominant competitive position
- maintain position
- invest company resources
Strong competitive position
Average competitive position
- harvest strategy or a gradual withdrawal
- maintaining the minimum investment or disinvestment
Favourable competitive position
- gradual withdrawal or abandonment
- disinvestment or disposal
Weak competitive position
- Cox, W. E. (1967). Product life cycles as marketing models. The Journal of Business, 40(4), 375-384.