In the product life cycle, which stage is typically characterized by intense competition and market saturation?

The maturity stage of the product life cycle is characterized by intense competition and market saturation. During this phase, a product has typically been in the market long enough that most potential customers have already purchased it. As a result, sales growth begins to slow, and competitors enter the market with similar products, leading to heightened rivalry.

In this stage, companies often strive to differentiate their products through marketing and innovation to maintain market share, as the overall demand in the market stabilizes. Price competition also emerges as businesses work to attract customers from rivals, and profit margins may begin to decrease due to these competitive pressures. By understanding these dynamics, businesses can strategize accordingly to extend the life of their product or pivot to new opportunities in response to the saturated market.

The other stages of the product life cycle—introduction, growth, and decline—do not exhibit this same level of competition and market saturation. For example, the introduction stage focuses on building awareness and establishing a market, while the growth stage is characterized by increasing sales and emerging competitors but not yet the overwhelming saturation seen in maturity. Lastly, during the decline stage, sales begin to drop, and many competitors may exit the market, further altering the competitive landscape.