Competitive Advantage In Mature Industries

As explained earlier, the maturity stage is the highest level that can be attained, although very critical because it could eventually lead to the decline of an industry. In order to save a business from declining however, the following factors could be considered.

Cost Advantage: Traditionally, it is believed that minimized cost encourages an increase in investment or profit; this could be achieved by adopting the three elements introduced below.

• -       Low-cost Inputs: At the maturity stage, an industry should have explored the right quantity of materials needed to produce; this prevents it from buying in excess. Also, when an industry establishes a good relationship with a supplier, it is likely to receive a reduction in cost of materials. Therefore, an industry should seek ways to spend less on materials while it maximizes production.
• -       Low Overheads: These are expenses that a business takes care of that doesn’t directly contribute to the production process, such as rent and transportation. However, an industry that pays rent or constantly seeks outside help to transport its products should consider purchasing a building and/or vehicle for itself.  
• -       Economies of Scale: This is a discount enjoyed by the purchase of goods in a large quantity compared to its unit value. A good example of this is a manufacturer and wholesaler transaction. Apparently, a wholesaler that decides to buy in bulk spends less than a retailer or a consumer who buys in smaller units.

Segment and Customer Selection: The success of every business is dependent on its consumers, and this is why it is very necessary to investigate and discover their preferences and other means of satisfaction. Here are some helpful ways to win the pleasure of customers.

• -       Value Exchange: this involves a study in the transactions made by customers to determine the most desired product by a group of customers. Amazon makes use of this element; by suggesting books to customers based on other choices made by previous buyers or viewers of the same book.  
• -       Customer Relationship Management: here, a business builds a good relationship with its customers by providing extra benefits that are initiated by the level of transaction made. For example some casinos provide their top clients with hotels and other services for free.
• -       Crossover: this is the act of creating a new product by merging the features of two existing products.   

Quest For Differentiation: every business has an ambition to be ahead of its competitors, and the only possible way to do so is by doing things differently. This could be practiced by:

• -       Innovation: bringing in new ideas and different concepts of production.
• -       Augmenting Product and Services: could also achieve differentiation.

Mature industries that successfully implement these strategies will be able to resist falling into the unfavorable decline stage, and most likely stand out in the market.