Hostile Declining Markets
Hostile declining markets – why do markets decline?
a. Obsolete technology
b. Change in customer needs leading to fall in demand
c. Alternative satisfactions
Strategic alternatives include:
a. Revitalizing the markets
b. Becoming a profitable survivor
c. Harvest and withdraw
Revitalizing the markets
a. Identify and supply new market segment
b. Introduce new products
c. Introduce new applications of existing products
d. Change the market.
Wear-out and renewal
Strategic and tactical wear-out is the problem that any organization will face if it retains its current strategies and tactics without any consideration of review or change.
The following factors give rise to wear out:
a. Market changes – customer requirements, distribution requirements.
b. Competitor innovations.
c. Internal factors – poor cost control, lack of consistent investment, ill advised change of successful strategies.
In order to avoid strategic wear-out it is important to review marketing strategies regularly.
Learn the techniques that should be applied in reviewing a marketing plan - in hostile declining markets