Mature Markets - Limited Product Expansion

Mature markets result in slower growth of revenue and lower margins as companies begin to compete on price and service versus the past driver of value: growth. Competitors usually have to differentiate themselves in the customer's eye to maintain value. Some become lost cost suppliers, high quality suppliers of products, or niche suppliers of services. If companies are able to create a natural monopoly (economies of scale, buyer power, etc.) then mature markets can turn into cash cows, where the main company needs very little investment to produce very large amounts of free cash flow. … "Mature Markets - Limited Product Expansion" will have a long-term negative impact on this entity, which subtracts from the entity's value. This statements will have a short-term negative impact on this entity, which subtracts from its value. This qualitative factor will lead to an increase in costs.