Final answer:
The question refers to the 'maturity' stage in the product life cycle. Companies extend this stage by innovating and adding new features to the core product to maintain market relevance and competitiveness. This contrasts with the planned obsolescence strategy where products have a predetermined lifespan.
Step-by-step explanation:
The student's question is about the concept of the product life cycle (PLC), particularly focusing on the third stage. The blank in the question should be filled with the word "maturity." In the maturity stage, products have penetrated the market thoroughly and face intense competition. Companies often try to extend this phase by adding new features or rebranding the product to rejuvenate interest and maintain market share. This strategy is in stark contrast to the planned obsolescence approach, where products are designed with a limited life span to ensure continuous consumption. Revitalizing products in the maturity stage is critical to avoid the decline phase, where sales and profits begin to fall.
Technological innovation also plays a role in the PLC. By continually developing new technologies, companies can create a competitive advantage, which helps sustain the maturity phase of their products. However, consumers can find it challenging to keep up with this pace of innovation.
Ultimately, the goal is to maintain a product's relevance in the market. A company's focus on core competencies can lead to better outcomes than diversifying into many different products. Concentrating on a core product and enhancing it ensures long-term success and the sustainability of its maturity stage.