Decline phase strategy

Decline phase strategy
See also
Growth phase strategy Market maturity Maturity phase strategy Cost leadership strategy Preventive pricing strategy Competitive position Market expansion Mobility barriers Penetration 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.

Proposed actions

The dominant competitive position

• maintain position
• invest company resources

Strong competitive position

• maintain position or use harvest strategy
• minimum investments from own resources

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

• Cox, W. E. (1967). Product life cycles as marketing models. The Journal of Business, 40(4), 375-384.