The purpose of this thesis is to find out how the firms in the mature and declining stage cope with the uncertain situations and to investigate their key strategic factors which influence the strategies chosen by the firms.
This thesis explores the complex competitive challenge of declining demand for the products of a firm. It investigates the nature of the determinants of a declining industry's environment and the attributes of strategic alternatives for responding to industry decline.
The competitive strategy of a company shall be considered according to its internal characteristics and external environments. Each company in the mature industry has to choose different strategies suitable for their capabilities and external characteristics. This thesis considers how companies might choose among the strategic alternatives identified. The major findings of this research are summarized as follows:
First, a company should analyze their internal capabilities such as technical level, managerial ability before selecting their competitive strategy.
Second, competitive strategies are classified by two matrices based on profit potential of the whole industry and similarity or relevant of new business scope by a hinge capability which comes from the existing business.
Third, the internal capability is the most important factor whether a company should decide staying in the industry or exiting out.
In conclusion, the essential factor of competitive strategy is internal capability. So evert company should develop their core competence in order to maintain their competitive positions and to get their final goals.
