In the final phase of the maturity stage of the PLC, the market _______.
A) Picks up steam as it moves to the decline stage
B) Begins to feel the pressure of overcapacity and the market starts to lose customers
C) Begins to see price only buyers move in and challenge existing producers to add more features to the product
D) Begins to feel the pressure of global manufacturing and moves to go international at this time.
E) None of the above

Question

Quizplus · Accepted Answer

In the final phase of the maturity stage of the PLC, the market starts to feel the pressure of overcapacity, which leads to an increase in competition and a loss of customers. This is because there are more producers in the market than are needed to satisfy demand. As a result, prices start to decline, and the market becomes more price-sensitive. This puts pressure on existing producers to reduce costs and add more features to their product in order to remain competitive. Eventually, the market reaches a point where it can no longer sustain the excess capacity, and producers begin to exit the market. This marks the beginning of the decline stage of the PLC.

In the Final Phase of the Maturity Stage of the PLC