Maturity stage of industry evolution

Maturity stage of industry evolution
Maturity is the third stage in the industry lifecycle. Maturity is a stage at which the efficiencies of the dominant business model give these organisations competitive advantage over competition. The competition in the industry is rather aggressive because there are many competitors and product substitutes. Price, competition, and cooperation take on a complex form. Some companies may shift some of the production overseas in order to gain competitive advantage.
For example, Toyota is one of the world’s leading multinational companies, selling automobiles to customers worldwide. The export and import taxes mean that its cars lose competitiveness to the local competitors, especially in the European automobile industry. As a result, Toyota decided to open a factory in the UK in order to produce cars and sell them to customers in the European market.
The haute couture fashion industry is another good example. There are many western-branded fashion labels that manufacture their products overseas by cooperating with overseas partners, or they could seek foreign suppliers who specialise in particular materials or items. For instance, Nike has factories in China and Thailand as both countries have cheap labour costs and cheap, quality materials, particularly rubber and fabric. However, their overseas partners are not allowed to sell shoes produced for Adidas and Nike. The items have to be shipped back to the US, and then will be exported to countries worldwide, including China and Thailand.