1. Chapter #10

3. Johnson Controls IncInc Batteries, seats for autos Heating and cooling for schools Acquired weaker companies Global markets Good relations with GM, Ford, DaimlerChrysler, BMW & Toyotarelations Market intelligenceintelligence

4. Mature Markets –Maintaining Market share Adidas, Johnson’s baby shampoo, Arm & HammerAdidasJohnson’s baby Arm Declining Markets –Divest or liquidate, consolidate, harvest

5. The shake out –Appearance of excess capacity –Difficult to maintain product differentiation –Intensifying of competition –Pressures on costs and profits –Weaker member fail or are acquired

6. Strategic traps during transition Failure to anticipate transition from growth to maturitygrowth –Overcapacity –Replacement sales outweigh first-time purchases No clear competitive advantage as growth slows –Getting stuck in the middle

7. Assumption that an early advantage will insulate the firm from price or service competition –Price versus quality (HP vs Dell)HP Sacrificing market share in favor of short- run profit –Not investing in R&D or marketingmarketing

8. Strategic choices for mature markets Business strategy to sustain a competitive advantage, customer satisfaction and loyalty Flexible and creative marketing programs to pursue new opportunities as conditions change

9. Analyzer –Works best in industries that still experiencing some technological change Defender –Industries where basic technology is not very complex Operational excellence Product leadership Customer intimacy Don’t get stuck in the middle Can you purse both a low cost and a differentiator strategy at the same time? Quality might be the key six sigmasix sigma

12. Dimension of Service Quality

15. LowLow-Cost Position No frills Productfrills Innovative product design Cheaper Raw materials Innovative production Processes Low-cost distribution Reductions in Overhead

16. Measuring customer satisfactionMeasuringcustomersatisfaction Improving customer retention and loyalty –Loyal customers Concentrate their purchases Are all customer equally valuableequally –Fidelity Investments ($13 vs less than $1) –Redlining –Profiles change

17. Extending volume growth Increased penetration –# of potential customers –Product penetration of that segment –Average frequency of use Why are non user uninterested in your product? Convert current nonusers in target segment into users

19. ExtendedExtended use

20. MarketMarket expansionexpansion

22. Harvesting Strategy

24. Maintenance

26. Profitable survivor strategy

28. Niche Strategy