If an industry is stagnant, do you focus more on costs or revenues to raise profits?
If an industry is stagnant, do you focus more on costs or revenues to raise profits?
This question needs a lot more context. In general here are the rules for stagnant industries
Hope this helps,
Udayan
Hi, it depends on the case. Data are crucial here to prioritize and take decisions. If you have a specific case in mind please share and we try to discuss it :)
Best,
Antonello
This is not the right question! It's really not that simple.
Like in any case, you need to determine what is big, what is changing, and what can be changed.
So, is the industry overall seeing falling R or rising C? If so, what is the segmentation? And, within that segmentation what is big, what is changing, and what can we affect.
If we can't "fix" either of these, can we grow our way out of this in a new market? Classic BCG matrix...milk our Cash Cow in this stagnant market and find a Star. Or, if it's a Dog, get rid of it and find a Star.
Your question is literally solving an entire case. And for that, we need a lot of questions, a robust framework, and more charts/graphs/information provided!
Possible solutions (i.e. essentially everything):
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