In mature markets, competitors drive prices; to compete effectively, a company must match its competitors prices. As

❸ In mature markets, competitors drive prices; to compete effectively, a company must match its competitors’ prices. As products reach maturity in their life cycle, they become like commodities and competition is typically price-based – but what of the situation when companies introduce innovative new products? Some companies seem to be able to command a much higher price. How do they do it? (Learning Objective 3) (AACSB: Reflective Thinking)