5. The product life cycle model predicts that entry will occur when demand for a product begins to grow very rapidly. Why? Will all entrants survive? Explain.

The product life cycle model is a theoretical model that describes the stages a product goes through from when it was first thought of until it is removed from the market. The stages typically include introduction, growth, maturity, and decline.

1. Entry occurs when demand for a product begins to grow very rapidly because this is the point where the product starts to gain popularity and acceptance among consumers. This is the growth stage of the product life cycle. During this stage, sales are increasing at their fastest rate. As a result, the market becomes attractive to new potential entrants who see the opportunity to profit from the growing demand.

2. However, not all entrants will survive. The survival of new entrants depends on several factors. These include the intensity of competition, the barriers to entry, the resources and capabilities of the new entrants, and the reaction of existing competitors.

3. For example, if the market is already saturated with many competitors, a new entrant may find it difficult to gain a significant market share. Similarly, if there are high barriers to entry, such as high startup costs or strict regulations, new entrants may struggle to enter the market.

4. Furthermore, if the new entrant does not have the necessary resources and capabilities to compete effectively, such as a strong brand, high-quality products, or efficient operations, it may not survive in the long run.

5. Finally, the reaction of existing competitors can also determine the survival of new entrants. If existing competitors respond aggressively, for example, by lowering prices or increasing advertising, new entrants may be forced out of the market.

In conclusion, while the growth stage of the product life cycle presents opportunities for new entrants, not all entrants will necessarily survive due to various market and competitive factors.