Explain one factor that could lead to a business experiencing declining market share in a growing market.

One factor that could lead to a business experiencing declining market share in a growing market is increased competition. Here's a step-by-step explanation:

1. Market Growth: A growing market attracts new entrants. This is because the potential for high returns and profits is usually higher in growing markets.

2. Increased Competition: As more businesses enter the market, competition increases. Each business will be trying to gain as much market share as possible, often through competitive pricing, marketing, and innovation.

3. Inability to Compete: If the existing business is unable to match the competitive strategies of the new entrants, it may start to lose its market share. This could be due to a lack of resources, inferior products or services, poor marketing strategies, or higher prices.

4. Declining Market Share: Even though the overall market is growing, the business's share of that market declines because it is not able to maintain or grow its customer base in the face of increased competition.

5. Result: Therefore, increased competition in a growing market can lead to a business experiencing a decline in market share if it cannot effectively compete.