Saturday, September 28, 2019

Satisfying all stakeholders when the business is competing in mature Essay - 2

Satisfying all stakeholders when the business is competing in mature product markets is difficult. Discuss - Essay Example 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 c ompetitors. 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 chai n. 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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