Ann is the marketing manager for an electronics manufacturing firm that make compact mobile telephones. She read a report in a business newspaper today that said it appears the mobile telephone market in the US was approaching the maturing stage in its life cycle. What can Ann expect as far as the level of competition her company will fact in the near future?
a. The intensity of the competition in the market will probably increase. Sales will continued to increase, but at a slower rate, then finally level off and decline
b. Competition should drop off very quickly as other companies leave the market at the beginning of the maturity state. The maturing stage is the final stage in the product life cycle
c. This will have not impact on the level of competition the market is just now beginning to expand as buyers become generally familiar with this type of product
d. Competition will not be very intense and the company will probably be able to increase its profit margins.
First here's some info for you regarding the product life cycle:
Products tend to go through five stages:
1. New product development stage
-no sales revenue
2. Market introduction stage
-sales volume low