Harvesting Strategy

Harvesting Strategy Concept: The English expression harvesting Strategy, made popular by the American Boston Consulting Group…

Harvesting Strategy Concept

The English expression harvesting Strategy, made popular by the American Boston Consulting Group, designates a strategy that consists on the maximization of short term results referent to a product or a market before the final withdraw of that. This strategy can be applied, for example, when is verified that a product is at the end of its life cycle – in these cases non essential expenses are reduced or even canceled such as several commercialization and marketing expenses, hoping that the marketing efforts performed before continue to produce effects for some more time and that the product continues to sell with attractive margins. This strategy can also be applied in situations in which the market is in clear decay and the company’s market share is too low to capitalize the product or service, this is, when the company or its product is in the four square “mutt” of the BCG Matrix.

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