Business strategies for firms in declining industries caused by low-cost import penetration

The major limitation of many studies on declining industries is the presumption that industrial decline is associated with the final stage of the industry life cycle. These studies often define the sample of their study as those firms where their dominant products are subjected to technological obsolescence and are experiencing a persistent decline in the demand of their products. Conversely, the current study identified factors that the cause of the shrinking in demand of the UK industries was not generally obsolete technology. The decline of UK industries was partly due to severe low cost import penetration that stimulated the shift in demand from the UK manufacturers to the cheaper imported products from the over-seas low cost manufacturers. [Continues.]