Abstract
Within the industry life cycle, industries eventually will be faced with the decline stage. The decline stage threatens the existence of the industry in numerous ways such as increased competition and similar, yet more beneficial, substitute products or services readily available. This paper will analyze the Maine Wild Blueberry industry, which is currently experiencing the decline stage. We will see examples of the negative effects competition can have on blueberry businesses as well internal factors with the product’s production. The paper will also discuss how the decline stage offers businesses an opportunity to reinvent themselves, in order to stay competitive within the industry (Parnell, 2014).
The DECLINE of an INDUSTRY: MAINE WILD BLUEBERRIES
In Maine, blueberries are more than just a fruit. Their abundance has provided substantial benefit for farmers in the industry along with a place within the hearts of the New England culture. However, due to recent oversupply issues and increased competition from other ‘superfoods’, the industry that was once a crucial staple in the Northeast is facing a steady decline (Whittle, 2018).
During the industry life cycle, businesses inevitably reach a stage of decline. The decline stage is usually characterized by a decrease in demand and consumers switching to more favorable substitute products or services. This decline however, is not in itself the end of the industry rather it can be seen as an opportunity for businesses within the industry to ‘reinvent’ themselves in order to avoid extinction (Parnell, 2014).
The decline of Wild Main Blueberries is a great example of the decline stage of an industry. With numerous competitors in the ‘superfoods’ industry and unexpected agricultural ailments like droughts and diseases, the blueberry industry in Maine is facing an existential crisis. Because of these factors, the blueberry industry has faced a steady decline in demand, which in turn has decreased the market price.
Just as in any highly competitive market, these new competitors such as acai and quinoa, have been able to market themselves as a ‘superfood’. A superfood is defined as form of sustenance that is “mostly plant-based but also some fish and dairy – that are thought to be nutritionally dense and thus good for one’s health” (Wanjek, 2019). Though blueberries are considered to be a superfood, there is no clear criteria for what can be considered a superfood. These new competitors were able to successfully market their product and have been fortunate enough to not have similar issues like the Maine Wild Blueberry industry faces.
As can be seen in the decline stage of the industry life cycle, the introduction of substitute products along with unforeseen crop yield issues, has been detrimental to the continued growth of the wild blueberry industry in Maine.
As mentioned earlier, the decline stage offers the possibility for businesses to reinvent by changing their image or exploring new options within the same industry. To alleviate some of the burdens of competition with the industry, nearly all of the blueberry crops in Maine were frozen and used in both frozen and processed foods (Whittle, 2018).
In 2015, Michael Terrien, co-creator of Bluet, successfully re-positioned his business, to sell Wild Blueberry Sparkling Wine made exclusively from Maine Wild Blueberries. Bluet’s wine sells for $30 per bottle and has trouble keeping enough in stock. This sort of maneuvering is crucial for an industry to survive during a decline stage (Into the wild blue, 2019)
The decline of an industry can most certainly lead to its eradication with the existence of external threats from new competitors and internal challenges. The key for businesses to survive in such environments is to be able to re-position themselves, such as Bluet, by phasing out insolvent channels and offering a differentiated yet similar product in the marketplace (Claessens, 2015).
References
Within the industry life cycle, industries eventually will be faced with the decline stage. The decline stage threatens the existence of the industry in numerous ways such as increased competition and similar, yet more beneficial, substitute products or services readily available. This paper will analyze the Maine Wild Blueberry industry, which is currently experiencing the decline stage. We will see examples of the negative effects competition can have on blueberry businesses as well internal factors with the product’s production. The paper will also discuss how the decline stage offers businesses an opportunity to reinvent themselves, in order to stay competitive within the industry (Parnell, 2014).
The DECLINE of an INDUSTRY: MAINE WILD BLUEBERRIES
In Maine, blueberries are more than just a fruit. Their abundance has provided substantial benefit for farmers in the industry along with a place within the hearts of the New England culture. However, due to recent oversupply issues and increased competition from other ‘superfoods’, the industry that was once a crucial staple in the Northeast is facing a steady decline (Whittle, 2018).
During the industry life cycle, businesses inevitably reach a stage of decline. The decline stage is usually characterized by a decrease in demand and consumers switching to more favorable substitute products or services. This decline however, is not in itself the end of the industry rather it can be seen as an opportunity for businesses within the industry to ‘reinvent’ themselves in order to avoid extinction (Parnell, 2014).
The decline of Wild Main Blueberries is a great example of the decline stage of an industry. With numerous competitors in the ‘superfoods’ industry and unexpected agricultural ailments like droughts and diseases, the blueberry industry in Maine is facing an existential crisis. Because of these factors, the blueberry industry has faced a steady decline in demand, which in turn has decreased the market price.
Just as in any highly competitive market, these new competitors such as acai and quinoa, have been able to market themselves as a ‘superfood’. A superfood is defined as form of sustenance that is “mostly plant-based but also some fish and dairy – that are thought to be nutritionally dense and thus good for one’s health” (Wanjek, 2019). Though blueberries are considered to be a superfood, there is no clear criteria for what can be considered a superfood. These new competitors were able to successfully market their product and have been fortunate enough to not have similar issues like the Maine Wild Blueberry industry faces.
As can be seen in the decline stage of the industry life cycle, the introduction of substitute products along with unforeseen crop yield issues, has been detrimental to the continued growth of the wild blueberry industry in Maine.
As mentioned earlier, the decline stage offers the possibility for businesses to reinvent by changing their image or exploring new options within the same industry. To alleviate some of the burdens of competition with the industry, nearly all of the blueberry crops in Maine were frozen and used in both frozen and processed foods (Whittle, 2018).
In 2015, Michael Terrien, co-creator of Bluet, successfully re-positioned his business, to sell Wild Blueberry Sparkling Wine made exclusively from Maine Wild Blueberries. Bluet’s wine sells for $30 per bottle and has trouble keeping enough in stock. This sort of maneuvering is crucial for an industry to survive during a decline stage (Into the wild blue, 2019)
The decline of an industry can most certainly lead to its eradication with the existence of external threats from new competitors and internal challenges. The key for businesses to survive in such environments is to be able to re-position themselves, such as Bluet, by phasing out insolvent channels and offering a differentiated yet similar product in the marketplace (Claessens, 2015).
References
- Claessens, M. (2015, July 13). Product Life Cycle Strategies and Characteristics. Retrieved from https://marketing-insider.eu/product-life-cycle-strategies/
- Into the wild blue yonder - The Boston Globe. (2019, March 18). Retrieved March 26, 2019, from https://www.bostonglobe.com/lifestyle/food-dining/2019/03/18/into-wild-blue-yonder/EWWOKKkQBaHh1lkiRuhyyM/story.html
- Parnell, J. (2014). Industry competition. In Strategic management (pp. 26-51). 55 City Road, London: SAGE Publications, Ltd doi: 10.4135/9781506374598.n2
- Wanjek, C. (2019, March 18). What Are Superfoods? Retrieved March 26, 2019, from https://www.livescience.com/34693-superfoods.html
- Whittle, P. (2018, September 04). With industry in decline, wild blueberries sing the blues. Retrieved March 26, 2019, from https://apnews.com/44593fc9120f466a83c527b715fe7c15