Growth Stage of the PLC
The Growth stage is characterized by product sales increasing often at a very rapid rate. This is seen by large percentage sales increases over previous periods (e.g., 50% increase in sales from one quarter to the next). This is an indication the product has advanced beyond Early Adopters and is now being purchased by the mass market (i.e., Early Majority).
It is also the stage when early entrants begin to realize profits, though the fact the market is now profitable invariably leads to increased competition. It is also the time in which competitors try to actively position their brand in a way that will separate it from the onslaught of new entrants. For many products the Growth stage is represented by three distinct sub-stages:
- Early Growth Stage
- Middle Growth Stage
- Late Growth Stage