UNDERGRADUATE

School of Business and Economics

Business Administration Department

Name :Enjel Gabrielle C. De Guzman Date : December 3, 2021

Instructions. Kindly answer comprehensively the question below. Express it in your own
words and should not exceed in one (1) page.

What must Web-based retailer do to measure the impact of the saturation of its product
category?

Answer:

What I’ve learned based on my readings, when the volume of a product or service
in a marketplace has been maximized, market saturation occurs. In the retail life cycle,
we can see that maturity is characterized by slow sales growth, this is where we spot
market saturation. For Web-based retailers, just like other industries, market saturation is
caused by a large number of firms in an institutional format, competition from newer
institutions, changing societal interests, and insufficient management skills to lead mature
or larger firms. Web-retailers can measure the impact of the saturation of its product
category through scrutinizing the industry they are in. If there are a handful of major
suppliers who all sell the same product or products with potentially low profit margins
which makes entry into the market less appealing to new companies, then this may be a
sign that the market is already saturated. If their sales continue to rise at a much slower
rate than in previous stages, then that’s another sign that the product category has
reached market saturation. Aside from that, web-based retailers can ascertain if they've
reached market saturation by determining whether their customers are still enticed by
their product offerings, if their prices are still appealing to their target market (either budget
conscious customers or high-end buyers), and if their customer loyalty rate is still high.
All of these can be measured using various KPIs, such as data from their customer/sales
growth rate or the achievement of business goals and objectives.

In order to solve this, a company can only grow by improving existing products and
stealing market share from competitors, or by increasing overall consumer demand. Once
maturity is attained, the goal is to maintain it for as long as possible. Web-based retailers
can also use creative marketing, review pricing and lower it if necessary, offer new
customer service options, or try out a niche market product within a saturated market.
 Rubrics for Assessment

4 3 2 1
Some
Criteria Rating
Excellent Significant Improvement Unacceptable
Required
Complete in all Complete in most Incomplete in Incomplete in most
Completeness aspects; reflects respects; reflects many respects; respects; does not
(30%) all requirements. most reflects few reflect
requirements. requirements. requirements.
Presents and Presents an Presents a Presents an
insightful and effective analysis superficial incomplete
thorough of all analysis of some analysis of the
analysis of all requirements. requirements. requirements.
requirements.
Makes appropriate Makes appropriate Makes little or no
Analysis and
Makes connections on the but somewhat connection
Application
appropriate and concepts studied vague connections between on the
(50%)
powerful in the course. on the concepts concepts studied in
connection on studied in the the course.
the concepts course.
studied in the
course.

Writing Writing is Writing lacks Writing is

Writing demonstrates a accomplished in clarity or unfocused,
Mechanics sophisticated terms of clarity and conciseness and rambling, or
(20%) clarity; conciseness and contains contains serious
conciseness; contains only a numerous errors; errors; lacks of
includes few errors; gives insufficient detail and relevant
thorough details includes sufficient detail and relevant data and
and relevant data details and data and information; poorly
and information; relevant data and information; lacks organized.
extremely well- information; well- organization.
organized. organized.

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