During which product lifecycle stage is a product likely to see increasing competition?
Options:
A. Introduction
B. Maturity
C. Decline
D. Growth
Answer (2)
The product lifecycle stage during which a product is likely to see increasing competition is the Growth stage. This stage involves rising sales and new competitors entering the market. Products in the Growth stage attract more firms who want to capitalize on the product's success.
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In the product lifecycle, the stage where a product is likely to see increasing competition is the Growth stage (Option D).
Explanation of Product Lifecycle Stages:
Introduction Stage : This is when a product is first launched in the market. During this stage, sales begin to grow slowly and there are typically fewer competitors, as the product is still new.
Growth Stage : Here, the product gains acceptance, sales increase rapidly, and the market expands. This is often when competitors start to enter the market because they see the potential for profit. As a result, you'll see increasing competition as more companies launch similar products.
Maturity Stage : At this stage, the product is well established. While there is competition, the market is more saturated, and the focus shifts to defending market share and differentiating from competitors.
Decline Stage : During this stage, the product faces a decrease in sales, often due to market saturation, the introduction of better alternatives, or changing consumer preferences.
In summary, the Growth stage is typically where you see an increase in competitors entering the market to take advantage of the growing demand for a successful product.
