ITPEC FE Morning October 2023 Question 66
ITPEC FE Morning October 2023 — Question 66 of 80
The question describes peak profitability and sales with competitors entering the market and pressure to innovate — the defining characteristics of the Maturity stage.
Product Life Cycle stages:
- Introduction — low sales, product just launched, minimal profit
- Growth — sales rising fast, few competitors, profit increasing
- Maturity — peak sales and profit, competitors flood the market with imitations, company must innovate
- Decline — sales falling, market shrinking, low profitability
Why not others:
- (a) Decline — sales are already falling; this stage comes after maturity
- (b) Growth — competitors haven't flooded the market yet; sales still rising
- (c) Introduction — product just launched; sales and profits are minimal
Key rule: "Peak sales + competitors copying + need to innovate" = Maturity stage.
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