Question

Describe a product that you think has saturated its market.

Answer 1

Smartphone, If a company launches new smartphone that have features similar to its old models then it wont sell because the market is already saturated with old model of the smartphone.

Step-by-step explanation:

Market Saturation is the situation that occurs when volume of service or product has attained its maximum mark. After reaching point of saturation a company can only achieve growth if it keep developing new products and hence capturing market share from other companies.

There are two different types of perspectives for market saturation , in macro perspective the saturation occurs when all the customers had been served and no other customer is left, and from micro perspective saturation is such a state when the market is no longer providing new demand for the firms.

Answer 2

A product is said to have reach its saturation point if such a product is no longer generating new demands due to factors such as competition, decreased need, obsolescence, etc.
A product that has saturated its market has the following characteristics:
1. the product has reached its maximum sales volume in the market.
2. The product is experiencing a decline in further sales.
The company producing the product can generate further sales by changing their marketing strategy or by modifying the product.