Harvest Strategy

Strategic Mgt

1. INDIRA GANDHI UNIVERSITY Meerpur , rewari

2. DEPARTMENT OF COMMERCE NAME : ANJU CLASS: M.COM (HONS) 9 th SEM. TOPIC : HARVEST STRATEGY SUBJECT: STRATEGIC MANAGEMENT SUBMITTED TO : DR. PINKI

3. WHAT IS HARVEST STRATEGY?

4. HARVEST STRATEGY It is a marketing & business strategy It involves reduction or termination of investment in a product, product line so that the entities involved can reap the maximum profit It is employed towards the end of a product’s life cycle When it is determined that further investment will no longer boost product revenue.

5. PRODUCT LIFE CYCLE

6. EXAMPLE A soft drink company may terminate investments in its established carbonated product to reallocate funds to its new line of energy drinks.

7. WHEN IMPLEMENTING COMPANY HAS 3 OPTIONS

8. TYPES OF HARVEST STRATEGY In this approach, a business or product can naturally decline over time. Investment is reduced, ensuring sustained profitability. Firms merge with another entity to enhance synergies & overall profitability. PASSIVE HARVEST MERGER HARVEST

9. CTD….. Profit maximization is pursued while gradually reducing resources, marketing costs,& funds. A specific product variant is discontinued while others are retained, streamlining resources to meet customer demands effectively. GRADUAL HARVEST STRATEGY SELECTIVE HARVEST

10. PROS & CONS PROS Maximizes profit before phasing out Mitigates potential future losses for future products Enables easy redirection of resources to profitable ventures Focuses firms on core expertise & business areas Maximizes short-term profits for matured products CONS A focus on short-term gains could compromise future competitiveness & adaptability. Customers may express dissatisfaction with declining product quality Closing a business or reducing resources can harm brand reputation if not executed strategically

11. REASONS OF ADOPTING HARVEST STRATEGY