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Decline stage is the last stage of an industry life cycle. The intensity of competition in a declining industry depends on several factors: sped of decline, height of exit barriers and level of fixed costs. To deal with decline, some companies might choose to focus on their most profitable product lines or services in order to maximize profits and stay in the industry.
Some larger companies will attempt to acquire smaller or failing competitors to become the dominant player. For those who are facing huge losses and do not believe there are opportunities to survive, divestment will be their optimal choice.
