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Home→The Westburn Dictionary of Marketing→H→harvesting strategy

harvesting strategy

Definition:
A strategic management decision to reduce the investment in a business entity (division, product line, product or item) in the hope of cutting costs and/or improving cash flow. Harvesting strategy has been popularized by the Boston Consulting Group in its application to what is termed 'dogs'. Generally, this strategy is advisable when (a) the business entity is in a stable or declining market; (b) the business entity has a small market share and building it would be too costly; (c) jobs would not decline too rapidly as a result of reduced investment; and (d) the business entity is not a major component of the company's business portfolio.

Cross-References:
[business portfolio]

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© Westburn Publishers Ltd 2002, The Westburn Dictionary of Marketing edited by Michael J Baker, ISBN 978-0-946433-01-8. www.themarketingdictionary.com. Entry: [George Avlonitis],.