Marketing Viewpoint by Ruth Winett
Seven Survival Strategies for Maturing Companies
Dell's acquisition of EMC is the story of two mature companies hoping to do better in combination than either is now doing separately. Eventually, all companies mature, and growth slows or even declines. Besides merging with another company, what can small and medium size companies do to thrive even as they mature?
Signs that your company is in the mature stage include slow or slowing growth rates, a saturated market, and the loss of competitive advantage.
Ideally, mature companies continue to introduce innovative new products and services, for instance providing one-two day delivery for goods ordered online. Some companies hope to increase sales by slashing prices. JCPenney instituted a 40% across-the-board price cut in 2012, but the tactic was a failure. Dell and others hope to grow through acquisitions. Still others pursue new markets or new customers. Lego.com offers building kits for adults, such as LEGO Architecture Fallingwater (21005), a kit to build a replica of one of Frank Lloyd Wright's signature designs.
Just as cloud backup services have seized market share from EMC's growing storage business, new products and services could supplant your products and services. Here are some steps to take to ensure future growth.
Companies that grow as they mature keep up with changes in technology, changes in the marketplace, and especially changes in their own industries and market niches. They also create a company environment that encourages questioning and experimentation. We can help you track changes in your market and identify and evaluate new competitors. Business research for growing companies
Business research for growing companies
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