Mature Markets and Cyclical Markets

To what extent does a mature and cyclical product market drive corporate ‘Restructuring’? Use an example of your choice to discuss whether restructuring transforms market and financial performance.

ANSWER: The answer will be in an essay format and this essay will explore restructuring in terms of mature and cyclical markets. To begin with the we will look into the definitions of mature and cyclical markets, then what is restructuring and why does it occur in mature and cyclical markets which will be supported by case studies. Lastly this essay will highlight on what have been the ramifications of restructuring and has it been lucrative in refining performance.

Mature Markets

When customers needs/desires have lessened, new innovations and new competitors reach gain more market share, numbers of cash flows have increased and instead of reinvesting the cash flows in to the market but returning it to investors are sure signs of a mature market. (Stark & Steward, n.d) In the earlier days markets were segmented on the basis of consumer age groups, for instance mature markets are classified based on the elderly consumers in the society, those 55 and above. Amongst the consumers within the 55 and above group there is further classification into 4 age groups. This was classified such because marketers thought that with time even products age and they will continue to suit the generation of consumers that have aged too. Currently the members that make up mature market segments are different and more unique in their own way from their predecessors, their outlook and attitudes are more towards the younger generations unlike previous old, retried citizens, their financial positions are strong, their consumption is more and lastly their lifestyles are more youthful, indulge themselves and reap the benefits of a better...