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The maturity is the period where the

product has reached its penultimate level.


Here, the established product tends to remain
steady and the number of competitors
increases. Although sales and profit generally
reached their peak, it is in this phase where
the organization should start reinventing its
products/services to remain their current
levels. Product differentiation is
recommended in this stage, as well as
efficient operations and formulation of
creative marketing strategies.
The decline is the period where the
product/services begins to reach or is
reaching its lowest point. Here, sales and
profits decline and price competitions are
intense. An organizations can choose to keep
the status quo, reduce prices to generate
more sales, consolidate with other
organizations, or simply exit the market.
Implementing strategies like product/services
reinvention and aggressive marketing can be
helpful.
Not all products follow the S-shaped
product life cycle curve. Some products
are briefly introduced but die quickly.
others stay in the maturity stage for a long
time. Some enter the decline stage are
recycled back into the growth stage
through promotion and repositioning.
STABILITY STRATEGIES
For organizations that are doing fine or are
doing better in their existing businesses, they
may choose not to implement any growth
strategy. They may not want to apply any
competitive strategy and hence, decide to
keep the status quo. Not adopting any
growth or competitive strategy is a choice
that organizations make. Stable with niche
and any loud strategy may attract the
attention of competitors
For example, there are businesses that
are successful monopolies in their own
right with no new entrants. They
continue to enjoy their profit. On the
other hand, there are organizations
that have not decided to expand and
became big. They are just content
with what they have.
RETRENCHMENT STRATEGIES
Sometimes, companies encounter serious
difficulties. When a company’s survival is
threatened or when it is not competing
effectively, it usually takes time to sit down
and review its current situation. They are
the following:
1. Liquidation is the most radical
action a company takes when the
company is losing money and thus,
is further compounded by a
disinterest on the part of the
stockholders to do anything more
to save it. In such cases, the
business may be terminated and its
assets sold.
2. Divestment is implemented when
a company consistently fails to
reach the set objectives or when
the company does not fit well in
the organization. Thus, the
stockholders would preferably sell
it or set is as a separate
corporation.
3. A turnaround strategy is adopted when the
organizations has reached a significant level
of no performance, no productivity,
demoralization and unprofitability and
therefore has to implement restorative
strategies. Organizations in this level have
serious problem that may lead to possible
closure. Once an organizations decides to
continue, turnaround strategies are
implemented. In a turnaround strategy
should focus on the following areas: climate
and culture, products and services,
production and operations, infrastructure
and finances
a. Climate and culture
The toughest and most challenging area for any
organization undergoing a turnaround strategy is the
climate and the culture. Generally a new chief
executive officers comes in and takes over the critical
organization. With a generally demoralized and
uncertain workforce, employees feel a certain
ambiguity and hesitancy. Aside from job security, they
are unsure how the new CEO will manage the
organization. Essentially, the strategy is to first study the
organization and audit the job descriptions of each of
the employees vis-à-vis there functionality in their
departments business units. After in-depth study is
done, certain people strategies can be adopted.
b. Products and services
A review of the product offered and services rendered is
needed; as questions like what product/services are
marketable in the industry, which of this product and
services need some improvements or major redesign, and
what distinct features can be introduced to attract buyers.
Note that some product and services that where wants
sale able and attractive may eventually lose their
costumer appeal. Because of rivalries among competitors,
this goods may become obsolete, dysfunctional, too
expensive, of low quality and therefore, not competitive.
When the organization gives dew and serious attention to
this concern the product and services competitiveness
aspect would have been half addressed
c. Production and operations
In the implementation of turnaround strategies,
this is the easiest phase to sort out and manage. The
CEO can look into the processes of the organization,
determine which processes are redundant and
defective, and undertake piecemeal improvements.
Questions ask will include finding out whether their
processes are lean and efficient, whether there is a
need to conduct facility equipment production and
operation review, whether the percentage of wastes
rejects and downtime is high, whether cycle time is
high or very high.
Once the organizations competently reviews
and addresses this areas, financial saving can easily
be generated.
d. Infrastructure
Turnaround strategies can easily achieve
significant improvements when the infrastructure is
correctly assessed and appropriate interventions
are introduced and reinforced. Technology is the
best infrastructure strategy that can bring radical
improvements. An organization seeking to turn itself
around can look up its structure and system and
implement needed step-up and enhancements.
e. Finances
When an organizations needs a turnaround
strategy, it is because its finances are waving a “
Red Flag”. This may mean that the organizations is
losing money or is marginally profitable, causing
concern to investors. Once the aspects of climate
and culture, products and services, productions
and operations, and infrastructure have been
adequate confronted and substantial interventions
have been successfully implemented, the financial
aspects will take care of itself.
Products generally follow a life cycle-introduction,
growth, maturity, and decline. In every stage,
certain unique strategies can be adopted to bring
about greater sales. Some companies are able to
prevent, atrophy (death of business/organizations) If
more creative strategies are implemented. In
addition, there are organizations that opt for
maintaining the status by applying stability
strategies. For organizations that seem to be verge
of closing because of certain reasons,
retrenchment strategies can be employed.
STRATEGIES
In the past, we were a Chinese local brand.
Now they view us as a very serious competitor-we
are more competitive in the market. This is a volume
industry, a scale industry. If you have the scale, you
have the advantage. So, first becoming one of the
leaders is very important from an efficiency point of
view. And second, being a top PC company
promotes our brand. Someone in the Chinese
media asked me how important it was to become
number one, and I asked him,” Can you name the
world’s highest mountain?” And he replied,
”Everest”. Then I asked,” And what’s the world’s
second highest?”
For consumers, we believe that transactional
model works best; it must be push model in
which products are pushed from the
manufacturer, not requested by the costumers.
So we built our end to end integrated
transaction model in China. We have replicated
that in India across all of our functions. In terms of
growing organically there, we have
approached low tier cities first in an effort to be
the pioneer to develop these emerging
markets. Basically, we have been careful not to
view India as just one big emerging market-we
look at it as a number of smaller markets, and
we separate it into different tiers.

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