1980- Michael Porter, the Harvard strategy Guru published Competitive Strategy. In it, he discusses how industries change, and how companies have to change, as they transition from growth to maturity.
- Slowing growth means more competition for market share.
- Firms in the industry increasingly are selling to experienced repeat buyers.
- Competition often shifts toward greater emphasis on cost and service.
- There is a topping-out problem in adding industry capacity and personnel. Thus companies’ orientations toward adding capacity and personnel must fundamentally shift and be disassociated from the euphoria of the past.
- Manufacturing, marketing, distribution, selling, and research methods are often undergoing change. The firm is faced with the need for either a fundamental reorientation of its functional policies or some strategic action that will make reorientation unnecessary.
- New products and applications are harder to come by.
- International competition increases.
- Industry profits often fall during the transition period, sometimes temporarily and sometimes permanently.