Related: 12 Marketing Tips for Your Marketing Campaign Gradual harvest strategyĪ gradual harvest strategy involves keeping the company or its product and focusing more on creating profits than growth or expansion. This can help them maximize the return on their initial business investment. Business owners who choose an outright sale of their company as the harvesting option sell the entire company to any entity interested in paying the asking price. These include: Selling harvest strategyĪ selling harvest strategy, often referred to as an exit strategy, involves selling the company or product line to another person or company. There are several types of harvest strategies. Related: 3 Types of Business-Level Strategies (With Examples) Types of harvest strategies Overall, the benefits of a harvest strategy include: For example, if a business is exploring new entrepreneurial activities, a harvest strategy can provide an opportunity to move forward by sacrificing the profits an outdated product can still offer. This can increase profit and also increase resources for other ventures. Related: 10 Marketing Strategies To Grow Your Business Benefits of harvest strategiesĪ harvest strategy can provide your company with an income with minimal investment. The game generates extra income until it finally becomes obsolete. Since it's played on a game system that's gradually becoming obsolete, the company decides upon a harvest strategy and stops marketing the game.Īny video game sales from that point are entirely profit, as there's no investment going into it. One particular video game has always been one of the company's most popular. A harvest strategy allows a company to reap the maximum profits before the product becomes obsolete or reaches the end of its life cycle.įor example, consider a company that sells video games. Harvest strategies are business and marketing strategies that involve reducing or canceling marketing spending on a product so that a company involved can get the maximum profits. In this article, we discuss harvest strategies, explain their benefits and explore different types. A harvest strategy allows a company to attain the maximum profits or benefits before the product reaches its decline stage. This marketing or business strategy occurs when a company determines that further investment can no longer increase product revenue. Companies may employ a harvest strategy when a product or line of business reaches the end of its useful life.
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