The stage of the product life cycle characterized by overcapacity, intense competition, and the eventual elimination of weaker competitors is called the
A. maturity stage
B. introduction stage
C. growth stage
D. decline stage
E. renewal stage
Answer: (A) The four stages in the product life cycle (PLC) are introduction, growth, maturity, and decline in that particular order with respect to time. The introduction stage (B) is characterized by low sales and profits when the product is new in the market. This is followed by growth (C) where both sales and profits rapidly increase. Then comes maturity (A) where the product faces intense competition, sales and profits reach their peaks, and weaker competitors drop out of the market. Therefore, (A) is the right answer.