costs fall with economies of scale •Unit market grows, profits rise but attracts the entry of new •The competitors Maturity sales growth as rivals enter the market = intense competition + •Slower fight for market share level of capacity utilisation •High profits for those with high market share •High flow should be strongly positive •Cash competitors start to leave the market •Weaker and profits fall •Prices Decline Stage Common features at this stage include: sales •Falling and/or competition •Market saturation in profits & weaker cash flows •Decline competitors leave the market •More in capacity utilisation capacity to alternative •Decline –switch products
•Unit costs fall with economies of scale •The market grows, profits rise but attracts the entry of new competitors Maturity •Slower sales growth as rivals enter the market = intense competition + fight for market share •High level of capacity utilisation •High profits for those with high market share •Cash flow should be strongly positive •Weaker competitors start to leave the market •Prices and profits fall Decline Stage Common features at this stage include: •Falling sales •Market saturation and/or competition •Decline in profits & weaker cash flows •More competitors leave the market •Decline in capacity utilisation –switch capacity to alternative products
4.3._product_additional_information_and_qs.docx