Which stage shows profits plateau and a highly competitive environment?

The mature stage is characterized by a plateau in profits and the emergence of a highly competitive environment. At this point in the business lifecycle, most of the potential market has been penetrated, leading to reduced growth rates. Companies often experience increased competition as existing players strive to maintain market share, and new entrants attempt to capitalize on the established market.

During this phase, businesses must focus on differentiation strategies, customer retention, and improving operational efficiencies to sustain profitability. Innovation may be directed more at enhancing existing products or services rather than creating entirely new offerings. Overall, the combination of stable sales, competition, and the challenge of sustaining profitability defines this stage of the business lifecycle.