As a result, during times of slow economic growth, mature firms can reduce their costs to boost earnings or profit and make up for the lack of, or slow revenue growth. Compare Investment Accounts. Earnings Through Cost Effectiveness Mature firms are usually larger companies and thus have a substantial operation in place, including manufacturing facilities and distribution channels that might include trucking and warehousing. As a mature company, Apple has had to adjust to slow and steady revenue growth. At the beginning of the industry lifecycle , new products or services find use in the marketplace.
They also typically have the processes and technology in place to enable them to capture information consistently in a repeatable way. While there is an expectation of stability that comes with a mature industry, a desire to see future earnings growth persists. Mature industries can be seen as having plateaued in some regards and may need to develop new innovations to remain relevant with their customers. In order for companies in mature industries to realize growth that might appease investors, significant effort must be made.