What happens to many competitors during the maturity phase of a product's life cycle?

During the maturity phase of a product's life cycle, many competitors experience tough market dynamics due to saturation and intensified competition. This phase is characterized by slow growth and a high level of competition, which often leads to a reduction in profitability for many players in the market. As a result, marginal competitors, or those who cannot maintain their market position due to factors like lower price points, inferior product differentiation, or inefficient operations, often find it increasingly difficult to compete effectively.

In this environment, these marginal competitors may choose to exit the market rather than endure the financial strain of continued operations without sufficient returns. Consequently, this leads to a consolidation of market players, where stronger competitors remain while the weaker ones drop out. This trend highlights the challenges faced during the maturity phase and the necessity for businesses to adopt strategic adjustments to sustain their operations.