A shrinking market has such a mass market a strong competitor to, but in contrast to this a decline in demand due to market saturation , product substitution or generally falling demand due to demographic or critical developments. This results in overcapacities , falling sales and, in some cases, high losses .
However, corporate growth is also possible in shrinking markets if the market share can be increased relatively faster than the market volume shrinks (e.g. if competitors with low profitability withdraw from it) or if it is possible to create profitable sub-segments (market niches) within the shrinking market Identify to whose needs you can adapt better than the competition (e.g. through product innovation) and who therefore still have growth potential. One example is Lenovo's strategy in the shrinking personal computer market .
- David Cardinal: How Lenovo is succeeding despite a shrinking market for PCs. ExtremeTech, online January 24, 2016 , accessed March 15, 2016.