1

10-2 Challenges in mature markets Sustaining a meaningful competitive advantage Challenges in declining markets Maximize cash flow and profit over the product’s remaining life

10-3 Market is still growing but the rate of growth starts to decline Occurs simultaneously with other changes in the market and competitive environment Appearance of excess capacity Increased difficulty of maintaining product differentiation Increased intensity of competition, and growing pressures on costs and profits

10-4 Failure to anticipate transition from growth to maturity No clear competitive advantage as growth slows Assumption that an early advantage will insulate firm from price or service competition Sacrificing market share in favor of short-run profit

10-5 Development of a well-implemented business strategy to sustain: A competitive advantage Customer satisfaction Loyalty Flexible and creative marketing programs geared to: Pursue growth or profit opportunities

10-6

10-7

10-8 A no-frills product Innovative product design Cheaper raw materials Innovative production processes Low-cost distribution Reductions in overhead

10-11

10-12

10-13