7Newswire
13 Jan 2023, 13:12 GMT+10
In 2022, the U.S. economy grew by around 2%. With year-on-year massive growth, many markets become saturated as new and old businesses look to get in on the ground floor.
To understand how a saturated market can occur, it's important to learn more about how the process occurs. What are the contributing factors to this phenomenon?
Looking to learn more about market saturation? You're in the right place to expand your education! Read on to find out everything you need to know about market saturation.
Market saturation occurs when a market is swamped with a certain product or service. Imagine a small town of about 15,000 people, featuring a small main street. Now imagine that town features 50 burger joints, tipping the scale of supply and demand.
In that case, a market could be said to be saturated by burgers (and with saturated fats!). Anyone opening a new burger joint in the town would need to go above and beyond to make their business stand out.
This can cause businesses to struggle to compete for a limited share of the market. On the upside, consumers benefit from lower prices and an increased range of products. Businesses may also take steps to improve the quality of their offerings in order to gain a competitive advantage.
The above is just an example. Market saturation can occur in any business, from fabricating to financial services. And it can happen on a global scale, causing major issues for economies worldwide.
When a product or service becomes very popular, businesses race to get in on the ground floor and grab a slice of the profits. Old companies may expand into new fields, while tiny start-ups try to get involved too.
A good example of this is the world of video games. Initial video games were pet projects, made by a small group of scientists trying to create something fun for their own amusement. But once the earliest games became popular, businesses everywhere jumped head first into the new world, producing consoles and games left, right, and center!
Today, the video game market features more games than any one person could ever play. Companies putting out new games are dealing with a saturated market and need to fight against swarms of competition, like a corporate game of Space Invaders!
When larger businesses expand into new territory, this can contribute to a saturated market.
Sometimes, even multinationals get in on the action. Global expansion into a new area can cause a major problem. Global expansion may exacerbate the issue, but it can create lots of jobs too.
Market saturation is a complex and fascinating process. But if you're in business, it's a good idea to learn as much as you can about it. This can help you learn more about how to thrive in a saturated market.
We hope you enjoyed reading our article and learned a thing or two about market saturation. Looking for more entertaining and informative content? Check out our blog and saturate your brain with knowledge!
Get a daily dose of Buffalo Breeze news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Buffalo Breeze.
More InformationBANGKOK, Thailand: Following China's reopening and the end of its strict COVID-19 restrictions, businesses on Thailand's holiday island of Phuket ...
NEW YORK, New York - Recession fears faded on Wall Street Thursday as annualized 4th quarter GDP (gross domestic product) ...
WASHINGTON D.C.: In December 2022, US existing home sales declined to a 12-year low, but lower mortgage rates raised cautious ...
SEOUL, South Korea: Korea Customs Service data released this week showed that South Korean exports for the first 20 days ...
SEATTLE, Washington: Amazon.com's cloud services division, Amazon Web Services (AWS), has announced that it will expand its data centers in ...
NEW YORK, New York - U.S. stocks crumbled on Wednesday as the extended rally on Wall Street came to an ...
NBA roundup: Thursday Spencer Dinwiddie scored a season-high 36 points as the visiting Dallas Mavericks overcame an early injury to ...
WASHINGTON - Somalia's government welcomed the death of Bilal al-Sudani, the Islamic State group leader killed by U.S. special operations ...
Nikita Kucherov had a goal and two assists, including one on Victor Hedman's game-winning tally, as the Tampa Bay Lightning ...
Paul George scored 35 points and Kawhi Leonard added 27 in just three quarters of play as the Los Angeles ...
President Joe Biden escalated the US military presence in Somalia last year, reversing a troop withdrawal ordered by his predecessorA ...
washington / port-au-prince, haiti - Panic spread though Haiti's capital, Port-au-Prince, on Thursday as dozens of angry police took to ...