mature industry

Mature Company Maneuvers
Name
Institutional Affiliation
Maturity in a company is a level of market saturation such that there is no increase in the demand for products and services offered by the firm in the sector highlighting the need for innovation (Hill et al., 2015). The lifecycle stage affects the strategy selected for survival as mature firms adopt diversification strategies while new entrants observe aggressive strategy.
Companies should innovate or diversify into other markets in the maturity level. Selecting a plan depends on the lifecycle stage that a firm is in currently (Hill, 2015). The strategies opted for in the maturity differs from the rest of the steps because if the firms fail to innovate or diversify, they lose their market positions and may ultimately exit the industry.
Innovation in a mature industry manifests in diversification into new products, removing and modifying the existing ones depending on the changes in consumer preferences. At maturity, the demand is stagnant, and the strategy chosen by a firm depends on the market competitiveness and where it gets its competitive advantage.
A firm can manage conservatism in the introductory or rapid growth situations by considering the probability of failure or pessimism as opposed to positivity (Rossetto & Blageski, 2014). Calculating the risks of undertaking a venture and providing a ‘worst case’ scenario is a conservative approach that ensures high-growth firms do not over-estimate their expectations thereby disappointing their investors.

However, a conservative strategy is preferred by mature companies.
Firms at the introductory levels should not be conservative. The firms at this phase should aggressively strategize as their positions are superior, a good product, and the market demands their product (Hill et al., 2015). At this stage, the products need to be placed strategically in the minds of the consumers, with constant reminders of its benefits. The sales should exponentially rise by aggressively advertising and campaigning to scoop a market share and eat into the industry.
In summary, the mature firms need to be cautious while making long-term strategies as any failure will lead to their decline while the new firms should exercise aggressive strategy to capture the markets away from the conservative approach.

References
Hill, C.W., Jones, G.R. and Schilling, M.A. (2015). Strategic Management: Theory & Cases: An Integrated Approach, 11th Edition. Cengage Learning: USA
Rossetto, C. R. & Blageski, J.E. (2014). Environmental scanning, strategic behavior and performance in small companies. JISTEM – Journal of Information Systems and Technology Management, Vol. 11(3): 1807-1175. Retrieved from http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1807-17752014000300611