Alternatives for Owners of Eroding Industries

Alternatives for Owners of Eroding Industries

Let’s assume that you own and operate a company that manufactures a product in an industry that is eroding or going downhill. What are your choices or alternatives?

• Run the company as a “cash cow,” resigning yourself to the fact that your industry is slowly declining or is no longer a growth industry. Keep what you are doing profitable even if you
  have to increase prices and/or cut costs.
• Increase R&D to develop new products.
• Acquire or merge with a competitor or strategic partner.
• Expand geographically.
• Diversify within the same familiar market.
• Sell the company now before there is further erosion in your industry

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