Why does the profitability of a mature industry tend to be lower than at other stages?

Question

Quizplus · Accepted Answer

In a mature industry, demand growth is typically low because most potential customers already use the product or service. This makes it harder for companies to differentiate themselves from their competitors, which can make it difficult to maintain high profit margins. Additionally, as international competition increases, companies may need to lower their prices in order to remain competitive, which can drive profits even lower. Therefore, all of the above factors contribute to lower profitability in mature industries.

Why Does the Profitability of a Mature Industry Tend to Be