Monday, 2 May 2016

How to stay competitive in a mature industry






Hello reader, hope you are good! So today I will be looking at mature industries. Basically, I will be letting you know how to compete in a mature industry. Majorly, according to my research multinational companies use bureaucracy to maintain efficiency which contributes to their competitive advantage and most of them are in the mature industry. Companies like that are able to achieve efficiency through the division of labor, standardized job responsibilities and a clear management structure. Basically, they use the principles of bureaucracy to guide their actions. 4 principles of bureaucracy will be discussed below.

"- Principles of Bureaucracy 

Structure of the business

Within a bureaucratic structure, senior colleagues are given the authority to control junior colleagues, thus each level can control  any level below it.

Rules and Regulations

Bureaucracy encourages uniformity amongst all staff, thus rules and regulations made by the most superior colleagues must be implemented at all levels.

Job Responsibility

Employees have special skills with respect to whatever tasks that they execute.  Their jobs are routine and functionally based.

Employment

Staff member are employed based on technical skills and expertise."

The goal of strategies being used in mature industries is to achieve a cost advantage. Their departments are functional by nature. In order to motivate staff to achieve goals, the form of control being used are quantitative by nature, they are tailored to each employee and it changes over a short period of time. Performance oriented schemes are also being employed in some major companies to stay competitive. I hope you have gained a thing or two.

Keep checking out my blog regularly. Cheers!

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