Why is the ability to exploit economies of scale so important in mature industries?

Mature Industries Mature industries can range from insurance to food distribution and although they're heterogeneric they can present several similarities from a strategic perspective. Mature industries occur when there is increasing market saturation and slowing growth with new demand being substituted by replacement demand as mature industries operate on a mass market level with their customers repeat buying. Although mature industries may not be as glamorous and receive as much press coverage as their technology …

…found within a mature industry is the ability to operate on a Europe-wide scale. This can give companies the ability to exploit the full potential economies of scale whilst maintaining adequate competition. Bibliography R.M. Grant Contemporary Strategic Analysis 3rd edition Blackwells J. Sloman and M Sutcliffe Economics for Business 1998 Pretence Hall D. Besanko et al. Economics of Strategy Wiley A. D Chandler Harvard University Press 1990 pages 21/28 N Slack et al Operation Management 2001 Pretence Hall