Competition is beginning to focus resources on market segments as market growth slows
Symptom: As growth slows, competition is concentrating resources on segments where they expect to be strong.
Implications for the market:
In many markets, the easy growth is gone and future growth can come only at the expense of other competitors.
Success in taking share will depend increasingly on distinguished service to a carefully chosen group of customers.
Each competitor will strive mightily to innovate and change in order to take share away from others and thus to grow its own business. But no one will succeed in being highly effective for all customers.
As a result, every company will focus its resources on only a part of the market, and will offer that chosen part a far-better-than-average product and service package.
But the successful company will need the help of a failing peer. The customers on whom this attention is lavished will not usually change their buying arrangements unless the supplier who has their business does something that the customer views as a product or service failure. Then the customer is likely to shift some of its volume.
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Perspectives: Conclusions we have reached as a result of our long-term study and observations.