Final answer:
Competition in the Maturity stage of a product's life cycle tends to decrease due to weaker competitors leaving the industry, declining consumer demand, and the perception of the product becoming less valuable.
Step-by-step explanation:
Competition tends to decrease in the Maturity stage of a product's life cycle due to several factors:
- Weaker competitors leave the industry: As the product matures, weaker competitors may struggle to keep up with the competition and may exit the market, reducing overall competition.
- Consumers no longer purchase the product: In this stage, the market becomes saturated with the product, and the demand starts to decline. This decrease in consumer demand leads to a decrease in competition as fewer firms fight for a shrinking market share.
- The product is no longer valuable: As consumer preferences evolve and new products enter the market, the mature product may be perceived as less valuable or outdated. This can result in decreased competition as consumers shift their preferences to newer and more innovative offerings.
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