Satisfying All Stakeholders When the Business Is Competing In Mature Product Markets Is Difficult In any business or firm, the stakeholders are people, groups, organisations or the members that are closely affected by its operations. Therefore, the stakeholders are adversely affected when a business is in losses…
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Therefore, the management should ensure that the business is making profits all through the year. This is not an easy task especially when a firm is in the mature competition stage. In this stage, all the competitors have established markets. They are all struggling to get an extra market to expand their operational sphere (Neale and Haslam, 1994:120). Since the stakeholders have entrusted the management to deal with the business, they will only require satisfactory results. As such, most of the managers have to develop strategies that will improve on the overall business performance. In many developed countries, many businesses have been in the market for a long time. Therefore, they have firmly established their business links. This leaves a mature competitive market. In such a market, most of the industries fight for a low margin that is not aligned to a certain product. Therefore, they have to be convincing enough to attract such a market. For example, close to 80 percent of the industries in the United States are already in the mature market bracket. Therefore, they have to compete in ensuring they develop a wider market niche. This could be rather indulging as all of them are utilising varying strategies. Impressing stakeholders in a mature competitive environment is a hard task especially when the demand for the product is saturated. This is as a result of too much supply from a large number of manufacturers and industries, thereby making the market saturated. As such, the demand for the products only increases in negligible proportions. In some situations, the demand for products in this market slowly declines, which reflects a similar record in the sales of individual companies. In such an instance, the industry or firm should look for ways of attracting customers from the saturated market, who are already allied to specific products. Therefore, they have to practically convince the market to start using their products and abandon the others from the competitors. This is harder as compared to approaching a new market that does not have any experience in using product of such nature. A mature market has industries and firms that have a considerable financial muscle. Therefore, investing in emergent technologies can add huge value to managing the value chain. As such, companies invest in modern technologies which are used to improve on efficiency in production. Since their production is in large scale, they accrue the benefits of economies of large scale production (Haslam, Neale and Johal, 2000:67). In such a situation, the market is flooded with goods from different industries and firms, which is uncontrollable in liberalised markets. Practically, these businesses reduce overheads in relation to transport, labour and manufacturing when producing and supplying the products in the market on large scale basis. This could lead to high discount rates to consumers thereby reducing the prices of commodities across the entire supply chain. This could drive some other industries out of the market as the pricing drop could render theirs uncompetitive. Since time immemorial, there has been no generation of specific solutions or formulas that could be used by businesses in a mature competition. As a fact, they have to generate different strategies in ensuring they have a niche market (Ferrell and Hartline, 2010:541). Therefore, this makes it hard for the management to
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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.
This research will begin with the statement that a stakeholder refers to an independent entity with a stake or concern in a business undertaking. Stakeholder groups differ from one entity to another and consequently, they are interested in diverse aspects of business activities. Dissimilar and competing desires attributed to stakeholders, conflicts of interest in businesses are created.
How stakeholders influence business activities?
“The narrow definition considers those groups vital to the firm’s survival and continued success” (Booth and Segon 2008, p. 323). In the broader perspective, an individual or a group can be considered as a stakeholder in a business if there is something of interest to it in the activities of the organization and is powerful or authorized enough to affect the performance of the organization or has stake of any kind in the organization (Stonehouse and Houston, 2002, p.
One of the concerns facing the management is satisfying all involved stakeholders, including shareholders, customers, vendors, and to a lesser extend the society-at-large. Satisfying this diverse group is arduous at the best of times, but it gets close to impossible during an economic downturn or an industry-wide recession.
We see that increasing habit of taking tea ahs decreased the demand for milk. Change in the mode of dress means a change in the demand for the material. The fashion among ladies to keep hair long or short brings about changes in demand for hair pins, hair nets, etc.
(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
In a mature product market, there is little or no scope for the further growth of the product. In simple words, the product has been sold to the maximum number of targeted customers. Hence, customers will demand the product only when the
However, there are myriad of barriers to this international trade that can be categorized as social, cultural, political and economic problems. Social barriers are centered on welfare of a particular community and
Moreover, with the help of customers, an organization might enhance its range of profits and sales in the market among many other rival players. Furthermore, dependency and reliability of the customers acts as the prime strength of an organization to
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