An interesting definition of mature product market is found in Economics in Business Context by Colin Haslam, Alan Neale and Sukhdev Johal (2002, p.92). As per this definition, “a product market reaches maturity when demand for the product is determined by replacement”. I…
Does maturity necessarily lead to deterioration of market? This question can be answered using the concept of cyclicality.
Economics in Business Context (Haslam et al. 2002, p.92) further defines cyclical markets as “generally mature markets in which volume fluctuates at or around steady pattern of demand”. Depending on the replacement period of the product, the product will be required by the customers every few years, months or weeks. During the period when maximum customers replace the product, the demand for the product will be at its positive peak. This period is followed by a period of low sales. Thus, fluctuation in the demand for a mature product makes it cyclical. Some products have longer replacement periods than the others, making them cyclical. For example, a refrigerator may be replaced after every ten years but cold drinks manufactured by Coco Cola or Pepsi are bought by billions of people every day. Therefore, refrigerators may be termed as mature and cyclical. Coco Cola and Pepsi have reached maturity but they are not cyclical.
Let me illustrate with the help of a hypothetical example. Consider a product XYZ. Say, I had introduced XYZ in the market in 1990. The replacement period of this product was five years. Using excellent marketing strategy, XYZ had gained popularity amongst the customers by 1991. But, I had not yet sold XYZ to maximum number of targeted customers. I had to maximize my sales as well as confront a new problem; a competitor introduced a similar product called ABC in the market in the year 1992. After a research on XYZ, I realized that the product could be manufactured in a better way, leading to an increase its durability. The replacement period after increase in durability became 8 years. Increase in the durability of XYZ attracted more number of customers. Because it was a very popular product, XYZ reached maturity by 1995. It was sold to maximum number of customers. If I had not ...
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1.0 Characteristics of a Growing and Mature Product Market Table 1: Summary of Product Life Cycle Characteristics (Growing & Matured) Characteristics Growing Product Market Matured Product Market Sales Rapidly rising sales Peak sales Costs Average cost Low cost Profits Rising profits High profits Customers Early adopters Middle majority Competitors Growing number Stable number beginning to decline Source: Kotler (2002, p.172) 1.1 Growing Product Market The second phase of product life cycle is the growing stage.
Corporate Restructuring can be defined as an act of reconfiguring the organization. It involves acquiring certain business line and adding them to the current business offering. It may also involve downsizing or selling some of the business lines. It may also involve creating spinoffs and SPVs for strategic purposes.
According to the report the corporation is also a principal services provider through Caterpillar Remanufacturing Services, Caterpillar Financial Services Company and Progress Rail Services Company. Caterpillar is also a principal exporter in the United States and in 2012 the company recorded $65.875 billion in sales and earnings.
TCFL has been a stand alone business although setting off Town and Country Flooring (Norfolk) Limited, also known as TCFN, which traded prosperously in Norfolk. Both the companies enjoy a general principle which states that they would benefit from operating under a common 'Town and Country' banner.
Corporate restructuring is one of the organizational undertakings that requires complicated decision. This is because it affects the overall aspect of a company and may sometimes extend to its external environment.
This paper discusses the process of decision-making relative to the corporate restructuring of Dow Chemical Corp., one of the largest and most awarded chemical companies in the world.
The machinery growth rate is only a small 5% per year. This is really very slow. But the construction industry is tied up to the economy (Samuelson,1973).
The construction machinery industry included such products as power cranes, dragline, and excavators.
(2008. Page 9). The market acquires certain characteristics, while outgrowing others in the process. While growing up into a mature market, the economy starts with necessities, and moves on to high mass consumption goods. “The factories you
It also involves financing debts and selling out some portions and shares of the company to the investors. Restructuring can also be done as a bankruptcy component or when a company is bought by any other company. It mainly works on the
a business with poor management and slow adaptation to changing trends is most likely to find its skills and structure being less attuned with the high market demands and expectations (Ahstrom and Bruton, 2009). This is the point where corporate restructuring becomes paramount
It will be argued that obviously market maturity was majorly responsible for the company’s restructuring due to the increased level of competition as well as the necessity for bringing innovation in product that set forth the need to formulate an effective plan
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