Common strategic mistakes in stagnating or declining markets

Question

What are common strategic mistakes companies make within stagnating or declining markets?

Answer 1

The most common strategic faults companies create in declining or stagnating markets are:

i. Getting trapped in a profitless combat of attrition.

ii. Diverting too much cash out of the business too rapidly.

iii. Being overly optimistic regarding the industry’s future and spending too much on progresses in expectation that things will get superior.