[1] A commonly used example of this is the invention, growth and production of the personal computer with respect to the United States.
To attract as many consumers as possible, the company that developed the original product increases promotional spending.
In the maturity phase of the product life cycle, demand levels off and sales volume increases at a slower rate.
There are several competitors by this stage and the original supplier may reduce prices to maintain market share and support sales.
Profit margins decrease, but the business remains attractive because volume is high and costs, such as for development and promotion, are also lower.
This occurs when the product peaks in the maturity stage and then begins a downward slide in sales.
Eventually, revenues drop to the point where it is no longer economically feasible to continue making the product.
Labor costs again play an important role, and the developed countries are busy introducing other products.
Note that a particular firm or industry (in a country) stays in a market by adapting what they make and sell, i.e., by riding the waves.