Question

Declining Industries
The list of the fastest declining industries in the US includes: (1) hotels and motels, (2) DVD rentals, (3) book stores, (4) household appliance manufacturing. How can firms in these industries adapt to the declining industry conditions?

1. How can hotels adapt to the declining condition in their industry? What strategies can they pursue?

2. How can bookstores adapt to the declining condition in their industry? What strategies can they pursue?

3. How can DVD rental firms adapt to the declining condition in their industry? What strategies can they pursue?

4. How can manufacturers of household appliances adapt to the declining condition in their industry? What strategies can they pursue?

Answer 1

Answer 1= In order to deal with the declining demand in the hotel industry, it is important that hotels offer something unique and different from the rest of the competitors and have something special that a customer can get attracted to. In order to do so, the hotels can customize the packages of the guests depending on their requirements. They have to facilitate extra discounts, free services such as drinks, access to the spa and so on so that the customers may get some sort of impetus to come to the hotel. They must focus on service differentiation and sales promotion strategy to attract more customers.

Answer 2= Bookstores are in decline due to the online version of various book reading apps such as Kindle. In order to deal with this competition, the book stores must conduct some sort of events in their stores such as inviting famous writers and poets and facilitate the opportunity to the book readers to meet their favorite writers and poets. Apart from this, it is important to increase the book reading habit o they can distribute some free samples of low price books and novels that can induce the common public to read again.

Answer 3= DVD rents stores are also facing the same problems as the issue of bookstores. So they can also have a similar strategy of inviting celebrities to the stores. Decreasing the price of the rental or to provide some free services such as free delivery of the DVDs, developing new rental pans and referral plans so that more customers can rent in the DVDs.

Answer 4- The manufacturers of household appliances need to focus on the quality and new technology and inclusion of new items or products in their product i.e. By having the new technology and new features in the products, they can attract tech-savvy customers. The increase or extension of the product line will include more customers to their customer base. They can also offer discounts and extended warranty on their products.. They can also facilitate the products on monthly instalments.