Elements of Strategies for Declining Industries:


  • Selective investment / Turnaround; Invest as appropriate to give real competitive advantage.
    Idea: Become one of the strongest in declining industry – low-cost or clear differentiation

Segment or Niche

  • Selective investment / Turnaround; Identify attractive segment with great potential for long-term survival or short-term return

Exploit or Harvest

  • Phased Withdrawal / Retrenchment; Controlled divestment, reduce product alternatives and advertising to cut cost
    Problem: Loosing buyer and supplier confidence – leads to divestment or liquidation

Quick divestment

  • immediate sale or liquidation


Matrix mapping favorable/unfavorable Industry structure and good/poor Competitive position and potential, resulting in recommended strategic direction


Sectors or segments static or expanding, Knowledgeable customers, Price pressure, Increasing commoditization, Concentrated distribution

+ Exit cost and competitors leaving industry

Portfolio analysis


To select strategy when early warning signs are clear

Source of Strategies for Declining Industries:

End-Game Strategies for Declining Industries (Harrigan and Porter, 1983)