Answer to Question #260029 in Management for Paia

Question

How should firms choose from among the 4 opportunities they face in declining industries?

Answer 1

Selling out is the additional tactical alternative for a company in a dying industry. A portion of the company's assets, such as machinery, land, and inventory, may be divested or sold. The money raised can be utilized to improve the company's primary operations. Alternatively, the company might sell the company outright. Adapt to the lower demand. During the declining stage, the need for the item falls. The limited stock enables you to respond quickly to market and economic fluctuations, such as short item life - cycle, by reducing inventory. Stockpile reduction saves your company money on holding expenses, maintenance costs, and transit costs between warehouses.