However, the company tends to produce higher growth than most mature companies given its industry and loyal client base. Coca-Cola is truly deserving of its spot on the blue chip stocks list. While we will return to take a closer look at this sub-group later in the book, event these firms will have stable margins across the economic or commodity price cycle. As companies get larger and investment opportunities internally do not provide the growth boost that they used to, it should not be surprising that many growth companies look for quick fixes that will allow them to continue to maintain high growth. If these levels of growth continue, then even if Coca-Cola simply maintains current market share their revenues will grow at the same pace 3.
However, mature companies usually face ongoing and significant competition. A cash cow is one of the four BCG matrix categories that represents a product or business with high market share and low market growth. It's simple to set up. By focusing on the fastest-growing markets, Coca-Cola should drive sales, improving investor returns. This level of dividend growth would not exist unless the company operated a recession resistant business model with distinct competitive advantages and a wide economic moat. This incredible market share is very valuable, because consumers do not spend significant amounts of time contemplating which beverage to buy when thirsty.
Compare Investment Accounts. Although the characteristics for mature companies can vary, they typically exhibit certain traits that make them a well-established force in their industry. Place the peel on a chopping board and cut into the orange peel to create a fringed effect, then arrange into your desired shape. Companies in the decline phase tend to underperform the expansion rate in the economy. Vail is a quaint, beautiful, ritzy ski resort town tucked away in the gorgeous Rocky Mountains, about miles from Denver. With a declining industry backdrop, it might be difficult to identify organic growth prospects for Coca-Cola. The company is the largest seller of non-alcoholic beverages in the world.
Although this could take away revenues from bottling, having a leaner and more efficient business could boost margin growth in the future. As companies get larger and investment opportunities internally do not provide the growth boost that they used to, it should not be surprising that many growth companies look for quick fixes that will allow them to continue to maintain high growth. Found 0 of job openings. Coca-Cola says that it is in its transitional phase, and is looking to restructure, consolidate some of its operations, and spin-off some others — all in a bid to drive operational efficiencies, reduce supply-chain costs, and improve profitability. After some serious soul-searching, he decided to pursue a more entrepreneurial path and plunge headfirst into the unchartered waters — of coconut water. In recent years, the worldwide beverage market has grown at a rate slightly above 3.