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How does competition affect the product life cycle of similar products in the market?

Ines Valti

Competition has a significant impact on the product life cycle of similar products in the market. When there are several competitors offering similar products, the market becomes highly saturated, and it becomes quite challenging for each product to remain relevant. In such an environment, each product needs to have some unique selling points that make it stand out from the rest.

Initially, when a new product enters the market, it experiences the first stage of the product life cycle, which is the introduction stage. During this stage, competitors are minimal, and the product is perceived to be novel and unique. It is also during this stage that the product is typically advertised aggressively to create awareness and capture market share.

As the product progresses into the growth stage, more competitors come into the market, and the competition heats up. The market demand for the product continues to increase, and competitors are trying their best to offer similar products that are better than the original. During this stage, the focus is on product differentiation to survive the competition.

The maturity stage comes next, where the market is relatively saturated, and the demand for the product is not as high as it was before. The competition at this stage is intense as every player in the market struggles to retain their market share. Many companies try to diversify their product offerings to capture the attention of the consumers or innovate on the existing products.

The final stage is the decline stage where the demand for the product dwindles due to a variety of reasons, such as the emergence of better products. During this stage, the competition reduces as the focus is on liquidating the remaining stock and discontinuing the product.

In conclusion, competition plays a crucial role in the product life cycle of similar products in the market. It shapes the market and determines the longevity of the products. Therefore, as a user of a social network, it is essential to familiarize ourselves with competition dynamics in the market to make informed decisions when purchasing products.