MANAGEMENT

Detailed explanation-1: -At some point in this rise a marked increase in consumer demand occurs and sales take off. The boom is on. This is the beginning of Stage 2-the market growth stage. At this point potential competitors who have been watching developments during Stage I jump into the fray.

Detailed explanation-2: -Product growth stage This should be a period of rapid growth in both sales and profits for your product or service. Your profits should rise through an increase in output and more competitive pricing.

Detailed explanation-3: -During the maturity stage, products begin to enter the most profitable stage. The cost of production declines while the sales are increasing.

Detailed explanation-4: -If the product continues to thrive and meet market needs, the product will enter the growth stage. In the growth stage, sales revenue usually grows exponentially from the take-off point. Economies of scale are realized as sales revenues increase faster than costs and production reaches capacity.

Detailed explanation-5: -During the maturity stage, competition is at the highest level. Rival companies have had enough time to introduce competing and improved products, and competition for customers is usually highest.