7: Strategies For Mature And Declining Markets

Question 1

Maintaining a competitive advantage

Answer 1

Differentiation on product service or quality, low-cost positioning, satisfaction and loyalty

Question 2

Service delivery satisfaction

Answer 2

Gap between:

Market and service expectations

Management and service quality expectations

Service delivery and external communications

Perceive and expected service

Service quality specifications and actual service delivered

Question 3

Strategic choices for mature market

Answer 3

Develop well implemented strategies to sustain competitive advantage, customer satisfaction and loyalty.

Create programs to pursue growth

To push business into maturity: changing customers wants and needs, a substitute, increase in cost of raw materials, change in government regulations

Question 4

Service value creation

Answer 4

Time value (taxi), place (distribution/logistics - using mobile), form value (medical), problem solving value (education)

Question 5

Can use to success in service business

Answer 5

Seeking distinct market positions for competitive strength

Understanding in offering what target customers perceive to be superior value

Managing contact between customers and service personnel

Understanding the role of technology in service delivery

Question 6

Extending volume growth

Answer 6

Increase penetration (Understanding why non-users don’t want what we have – develop integrated systems help improve product performance and ease of use, expand this to beautician, develop more/convenient channels)

Extended use (develop all use of product for example nylon: military – hoisery)

Market expansion (strengthen position in market/underdeveloped market e.g. domestic expansion)

Question 7

declining markets

Answer 7

Conditions of demand (demographic shit, changing tastes and lifestyle)

Exit barriers - the higher the exit barriers the less hospitable the product and market will be

Future competitive rivalry (bargaining power, customer finding/switching to substitute)

Question 8

Six phases of hostility

Answer 8

1- margin pressure
2- share shifts
3- product proliferation -changing 
4- self defeating cost reduction
5- consolidation and shakeout
6- rescue