During the Mature Phase of the Business Lifecycle, the Company has become a leader in the initial market it has entered. Product sales are still growing although at a slower pace. The Company has created a group of loyal customers who purchase products/services from the Company.
Market and product expansion should be emphasized during the Mature Phase. Also, continued transactional and product cost refinement should be considered.
Items to Consider:
During the Mature phase of the Company, the following questions are some of the essential issues which must be resolved in order to continue moving our business wave forward:
Product/Service Considerations– Can we manufacture our product for less? Should we outsource manufacturing or certain components of the manufacturing process? Does off-shore manufacturing make sense? Should our services be treated as a profit center? Are we selling services to maximize margins? Should we be providing upgrades to our products? Should we be providing a newer version of our products? Should we provide complimentary products/services?
Market Considerations – Is our brand associated with quality, integrity and exceeding customer expectations? Should our brand be refreshed? Are we providing our products/services to all markets we should be? Should we expand in to other geographies such as Europe/Asia/South America? Can we sell our product into other markets within the geographies we are already selling into? Exploring complementary businesses and/or markets?
Operational Considerations – Are we providing our product through all reasonable and financially feasible channels? Can an expansion of our channels provide us with greater market share?
Financing Considerations – Are we obtaining capital at the lowest cost possible? Is our debt to equity ratio correct for our current business model? Are we managing the Company’s treasury to maximize shareholder return as well as to provide for any future working capital needs?
Business Plan – Upon reaching the Mature Phase, some may believe that the Business Plan has now become a static document. This is not so. The Business Plan should now begin to provide a road map as to how the Company will hurdle to the next level of product and market expansion. Emphasis should be placed on better understanding the competition and especially early entrants to the market to ensure the Company is not blindsided by these newcomers. This should all be documented and regularly revised in the Business Plan.
How We Can Help:
The leadership of the Company has worked hard to get the Company to a position of maturity and market entrenchment. This is a time when it is easy to relax, but this must be a time when management refines the Company and how it does business. A close eye must be kept on the customers, the competition, and market trends to ensure market share is maintained and customer loyalty stays strong. CXO Vantage can help navigate the marketplace during these times. From market analysis to operational reviews, CXO Vantage can provide your Company with the tools necessary to succeed during the Mature Phase of the Business Lifecycle. To set up a free introductory visit with CXO Vantage to discuss your current situation and how we can help guide you as you grow your business, call (801) 930-0842 or email us at firstname.lastname@example.org