In deciding on a strategy, a company in a declining industry must do all of the following except
A) lower prices.
B) manage industry capacity.
C) evaluate its strengths relative to the remaining pockets of demand.
D) evaluate the severity of decline.
E) monitor its cash flow.

Question

Quizplus · Accepted Answer

Lowering prices may not be a viable option in a declining industry as it may result in reduced profits and further deteriorate the industry. The rest of the options are critical in deciding on a strategy for a company in a declining industry. Managing industry capacity, evaluating strengths relative to remaining pockets of demand, evaluating the severity of decline, and monitoring cash flow are crucial factors to consider when determining a strategy for a declining industry.

In Deciding on a Strategy, a Company in a Declining