Industry alterations resulting from Market Maturity
Explain about the industry alterations resulting from Market Maturity?
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1. An industry’s transition to maturity does not start on a simply predicted timetable.
2. When growth rates do slacken, the onset of market maturity generally generates fundamental alterations in the industry’s competitive environment:
i. Slowing growth in purchaser demand produces more head-to-head competition for market share.
ii. Purchasers become more sophisticated, often driving a harder good deal on repeat purchases.
iii. Competition often generates a superior emphasis on service and cost.
iv. Firms have a topping-out trouble in adding new facilities.
v. Product innovation and fresh end-use applications are harder to come by.
vi. Global competition enhances.
vii. Industry profitability falls permanently or temporarily.
viii. Stiffening competition induces a number acquisitions and mergers of among ex- competitors, drives the weakest firms out of the industry, and generates industry consolidation in universal.
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