In what stage of the product life cycle do sales level off and competition increases?

The maturity stage of the product life cycle is characterized by the leveling off of sales as the product reaches widespread acceptance in the market. During this stage, the initial rapid growth of sales experienced in the earlier phases begins to stabilize because the majority of potential customers have already made their purchases. As a result, the market becomes saturated, leading to increased competition as more companies enter the market or existing companies strive to maintain their market share.

In response to the stagnation of sales, businesses often focus on differentiating their products and enhancing customer loyalty to combat the heightened competition. This may involve advertising, promotions, product modifications, or exploring new markets. Ultimately, this stage marks a critical point where companies must innovate and adapt their strategies to sustain profitability amidst a slower growth rate and an ever-increasing number of competitors.