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COMPETITIVE FORCES and PRODUCT LIFE CYCLE

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › COMPETITIVE FORCES and PRODUCT LIFE CYCLE

  • This topic has 2 replies, 2 voices, and was last updated 8 years ago by tinaboy.
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    Posts
  • September 15, 2016 at 7:22 pm #340671
    tinaboy
    Member
    • Topics: 27
    • Replies: 126
    • ☆☆

    As the product reaches maturity stage of the life cycle , it is significant that the firm retains firmly the niches it established during the growth stage.These niches target unique , segments of the marhet where the company stands out against its competitors and increased threats of new entrants .Capitalising on the weaknesses on competitors whilst maximising on own strenghts is essential to survive this tense stage of the life cycle.Taking over weaker companies which gradually succumb financially and strategically will enhance market share under control thereby making it difficult for new conpetitors to break through in the industry.

    Sir, would this be an approriate application of Porter as far as competitive forces?

    September 16, 2016 at 12:43 pm #340722
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10595
    • ☆☆☆☆☆

    It makes perferct sense but isn’t much to do with 5 forces – other than talking about fighting competitors. It says nothing about suppliers, customers, substitutes or new entrants.

    September 20, 2016 at 7:55 am #340991
    tinaboy
    Member
    • Topics: 27
    • Replies: 126
    • ☆☆

    Thank you so much .I have noted that.

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