<p>Adverse strategic and economic factors prevent managers from making rational repositioning, downsizing or exit decisions, especially within mature or declining demand industries. Instead of avoiding irreversible commitments that could provide temporary competitive advantage, the power of exit barriers can be reduced by investing in flexibility when resources are first committed. If not, then activities akin to radical surgery may be required during the industry’s endgame.</p><p><em>This article is taken from the author's original manuscript and has not been reviewed or edited. The definitive published version of this extract will appear in the complete </em>Palgrave Encyclopedia of Strategic Management<em>.</em></p>
Palgrave Encyclopedia of Strategic Management, edited by
Palgrave Macmillan, 2013.