Decline phase strategy

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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.

Proposed actions

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

  • abandonment,
  • disposal

References