Mature Markets

Question 1

Mature mkt definition

Answer 1

Market with products/services that have been around for a long time. Opposite of a new market (which is one that has emerged recently)

Question 2

Mature mkt general examples

Answer 2

Shampoo, luxury watches, banking, cell phone services, book publishers, travel companies, flowers

Question 3

Mature mkt characteristics

Answer 3

• growth rate is low (likely in low single digit numbers, similar to growth rate of GDP)
• competitive landscape is likely stable without dramatic changes
• typical profitability is usually low (if it is a massive market) but might be high as well (for high end markets)

Question 4

Mature mkt example: client is PE firm that bought inflatable mattress company. Now considering to enter permanent mattress mkt, should they?

Answer 4

Permanent mattress mkt:
- has been around for a while, thus likely a mature market
- might not grow that fast, maybe at rate of GDP
- competition is likely stable without drastic changes especially among top players