Firms are battling to defend or increase their market share, but they are using different strategies – some are entering new markets and some are innovating. Which PLC phase does this describe?

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BlackTom AI · Accepted Answer

The scenario in the question describes firms striving to defend or grow their market share using varied strategies, including entering new markets and innovating. 
Option 1: Introduction. This phase is about launching a product and building awareness; firms are focused on establishing a market, not primarily on defending or expanding share through diversification or innovation beyond market entry. 
Option 2: Growth. Growth involves a rapid increase in sales and market share as the product gains acceptance, often with expanding capacity and distribution. While some share expansion strategies occur here, the emphasis in Growth is on acceleration rather than the ongoing defense and diversification activities described. 
Option 3: Maturity. In the Maturity phase, market demand peaks and competition becomes intense. Firms actively defend or increase market share through tactics like entering adjacent markets, geographic expansion, and product/line extensions, plus innovation to differentiate offerings. This aligns with the idea of using different strategies to sustain or boost share as growth slows. 
Option 4: Decline. The Decline phase is characterized by decreasing sales and shrinking market interest; strategies focus on cost-cutting, harvesting, or divestment rather than expanding share or innovating to defend it. 
Overall, the described behavior—defending or increasing market share with strategies including entering new markets and innovating—best matches the dynamics of the Maturity phase, where competition is high and strategic diversification and renewal are common to maintain position.

COMM_V 296 103 104 2025W1 2025W1 COMM 296 Final Exam - December 15- Requires Respondus LockDown Browser

Firms are battling to defend or increase their market share, but they are using different strategies – some are entering new markets and some are innovating. Which PLC phase does this describe?

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