Question

During your presentation to the Board, the members interrupt you to say that they disagree and believe that Charles Schwab and the industry are in the mature stage of the business life cycle. During their critique, they tell you that mature stages have two groups of strategies: to deter new entry and to manage rivals. They express concern about the groups of new small firms that are trying to steal marketshare. Understanding their perspective, you decide to switch gears.

Growth StageWhich strategy do you tell the Board you plan to implement?
a. Manage rivals
b. Deter new entry

Answer 1

a. Manage rivals

Step-by-step explanation:

When the product which the business is offering gets to the maturity stage, I would propose that competing rivals are managed. The maturity stage is the stage where the company continues to record stagnant profit. The profit neither reduces nor increases and they also have to deal with new rivals. When this happens, it is best that the company engages its best brains to brainstorm on innovative strategies to supersede their rivals.

Some of these strategies might involve extending their products and services to other locations so that they can start from the initial stages of business growth, diversification, or price adjustments. Any of these options should be fully explored so that they can remain in the market and exceed their rivals.