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can you please explain some basic characteristics of the growing and saturated market in relation to competition?
growing market has got plethora of competitors whereas saturated has got few big players left but at this stage only those survive who manage to keep their cost down since profit declines.
please explain
Growing market – relatively easy for everyone because demand is growing, but only one or two firms will reach lead position, so emphasis on growing your market share to become a leader.
This position is necessary to survive the next stage. Once a market is saturated/mature it is no longer growing and the only way to sell more is to steal market share from competitors (who will retaliate). Part of the fight for market share will be by price cutting and to keep profits up, costs have to be pushed down too.
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