Competitive strategy choice in the mature stage of

Competitive strategy choice in the mature period of the industry

when the industry gradually moves from rapid development to relatively slow growth, the industry enters the mature period. In the mature period, in the case of slow demand growth, enterprises in the industry must strive to expand their market share in order to maintain their own growth rate, so as to measure the shore a hardness and thickness of the test piece first, so as to intensify the competition. However, if new competitors enter with a strong force, the competition will be more intense due to the expansion of production capacity. As the industry tends to mature in product technology, the product differentiation of major competitors is reduced, and the homogenization is serious. The focus of competition is mainly on price and service. Price war will become the most common means among major competitors

after the industry enters the mature period, it is often accompanied by the decline of price and the reduction of characteristics. Whether the enterprise adopts the cost leadership strategy or the differentiation war, preheating for 30 minutes and lagging behind in the working state, reducing costs is very important, and even related to the survival of the enterprise. During the growth period of the industry, most enterprises that entered the industry in pursuit of higher profits gradually withdrew from the industry because of rising costs, sharp decline in profits, and even losses. The remaining enterprises competed more fiercely and persistently for market share

d company is a Sino foreign joint venture boiler production enterprise. It has been taking differentiation strategy as its business strategy. It has developed rapidly in the growth period of the industry and has become the first group in the industry. However, after the industry entered the mature period, it was strongly impacted by the low price of competitors. Due to the high cost of products, the price reduction and participation in the competition have greatly reduced the profits. Moreover, due to the convergence with the products of major competitors, the product differentiation advantage is no longer obvious, and the price disadvantage has become the bottleneck of competition. Although company D has recognized this, it has always made cost reduction the focus of its work in recent years and has taken many cost reduction measures, but some of its functional strategies do not match the strategic adjustment of the enterprise, and many efforts have been offset. For example, in terms of technology strategy, in the mature period, the technical work should be carried out around reducing costs and reforming processes and manufacturing methods. However, the Technology Department of company d still uses the method of differentiation strategy to develop more new models, and the parts used are incompatible with the original products to a great extent. New and old products coexist at the same time, so that the comprehensive cost does not fall but rise, Brought a series of hidden losses. From the situation of company D, in the mature period of the industry, the management did not make clear whether the company should implement the differentiation strategy or the cost leadership strategy, resulting in the functional strategies of all departments falling into the same degree of confusion, or even self contradiction, and finally the enterprise fell into a dilemma in the strategic choice

like company D, some enterprises do not realize in time that the industry has entered a mature stage or lack self-knowledge, and are still immersed in the achievements of the past differentiation strategy and are unable to extricate themselves. They feel good about themselves, and are unwilling to make strategic adjustments decisively even in the face of the changed external environment. In addition, the grasp of the overall strategy of the enterprise is poor, and some functional strategies are not adjusted in time, resulting in continuous losses due to the mismatch between the company's strategy and functional strategy. Therefore, in the mature period, if the enterprise is still satisfied with its past achievements and cannot actively adjust its strategy to adapt to the new changes, it will be in danger of getting into trouble

author Xu Xinyue: MBA of Dalian University of technology. Currently, he is the duplicate director of the production headquarters and the director of the production management department of Dalian Sanyo Refrigeration Co., Ltd., responsible for the overall management of the company's production and operation related work. He has rich practical experience and solid theoretical foundation

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