An
industry producing one or more products that are declining in
demand, profitability, or both. A declining industry may be suffering
losses, or it may still be making a
profit that has been shrinking consistently. An industry may go into decline for a number of reasons. The
economy may decline and the industry's products may suddenly be considered
luxuries. Alternatively, a new technology may be developed that renders an industry obsolete. For example, the video cassette recording (VCR) industry was performing well for approximately 20 years. However, the introduction of DVDs, which are more efficient and of higher quality, turned the VCR industry into a declining industry. See also:
Industry Life Cycle.