As markets mature, competition on the basis of differentiation is preferable to price competition.

Question

Quizplus · Accepted Answer

In the mature stage, rivalry among existing rivals intensifies because of fierce price competition at the same time that expenses associated with attracting new buyers are rising. Advantages based on efficient manufacturing operations and process engineering become more important for keeping costs low as customers become more price sensitive.

As Markets Mature, Competition on the Basis of Differentiation Is