In the growth stage of the product life cycle, which of the following is most accurate?
A) Competition will begin to intensify as competing firms introduce their own versions of the product.
B) Competition will spur major price cuts that dramatically cut into profits.
C) Competition has already become well-established, with many weaker firms already leaving the market.
D) Competition is virtually nonexistent because competitors have not had enough time to introduce their own products.

Question

Quizplus · Accepted Answer

In the growth stage, the product has gained acceptance among consumers and sales are increasing rapidly. As a result, competitors will start introducing their own versions of the product, resulting in increased competition. This means that companies need to focus on differentiation, marketing, and distribution to maintain their market share. Price cuts may occur, but they are unlikely to be major as the market is still growing and demand is high. Option C is incorrect, as the growth stage is characterized by increasing competition, not a decrease. Option D is also incorrect, as competitors would have had time to launch their products in the growth stage.

In the Growth Stage of the Product Life Cycle, Which