What is saturation of the market?
What Is Market Saturation? Market saturation arises when the volume of a product or service in a marketplace has been maximized. At the point of saturation, a company can only achieve further growth through new product improvements by taking existing market share from competitors or increasing overall consumer demand.
Which scenario is an example of a market saturation?
Market saturation on a larger scale occurs when an entire industry experiences a drop in demand. This can occur due to new technology making a product or business obsolete. For example, the proliferation of cellphones decreased demand for pagers.
What is a product that has saturated its market?
Market saturation happens when an existing product has already reached the entirety of its customer base in the current market. This usually means supply begins to greatly outrun demand.