Mature market Essay Example | Topics and Well Written Essays - 1250 words

come on market - Essay ExampleThe customers in this good caterpillar industry(Neson, 1999) are commercial construction companies, equipment term of a contract and leasing companies, general construction firms and includes the mining, agricultural, waste management, industrial and forestry companies.The commercial construction companies are the lions share of this saturated mature market because the commercial companies have more money to spend, the greatest need for machineries and the greatest need for preciseness controlled equipment. All market situations contain risks.(Harringon,1999)Although the small construction companies market is now growing, there willing be a small income opportunity here because of the small capital investments that the customers will shell out. The machineries market,(Meyer,1983) as is the occurrence with other industries, is affected by the economic situation. In fact kat and its competitor Komatsu could not champion but watch their annual sales go down to the slowing down of the global thriftiness.The Consumers boldness in the product is another factor in studying the downturn in sales garishness which has been long lasting. The weakening of the global economy has contributed much to the saturation or maturity of the machineries market. It is now precise difficult to get a new sales tramps from construction and commercial companies that need the Caterpillar products. ... forthwith there are fifty five major players in the machineries business. Caterpillar occupies the number one sense of touch because it has been in operation for the past forty years. Caterpillar equipments are in demand worldwide because it has gained the sureness and confidence of its many clients. Caterpillar is known for products that are of quality and durability but also versatile. The sales people of Caterpillar are very adept at product demonstrations of their machineries and this is another big contributory factor to the success of Caterpi llar. (www.bplans.com)According to Daniels, a strategic planning group, a mature company, like Caterpillar, is move in a situation where there is very sales growth resulting to stagnant, decreasing or regular break even sales. Since there are many competitors to fill the needs of only a fewer markets, then the selling prices will most likely not increase. Companies in the mature market economy like Caterpillar are mostly using more aggressive price, service and quality that is in tune with the customers wishes. Since the market is tight, there is lesser elbow room to move up in footing of sales and quality services. For mature companies like Caterpillar(Sussland,2000) to grow more, growth opportunities have to be continuously notice and implemented. This can be done thru surveys, and research and development. Another strategy is to develop an organizational structure that will fit the ever changing marketing environment. This means that there will be a mark flexible support te am that Caterpillar is well known for in order to help the Caterpillar clients in every problem situation.Another strategy is revise the internal costing procedures in order to minimize costs and expenses. When expenses are lessened, then net income