CAF-7 · Chapter 4 · Question 5 of 15
A company is considering its strategy for a product that is currently in the 'Decline' phase of its life cycle. Which of the following is the most appropriate strategic action for this product?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Eliminating unprofitable distribution outlets and offering discounts to clear stock
Explanation
In the decline phase, sales and profits fall. The most appropriate strategy is to harvest remaining cash flows, eliminate unprofitable distribution channels, and offer discounts to clear remaining inventory before eventual withdrawal.
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