Market growth—profits go up and down. In the market growth stage, industry sales grow fast—but industry profits rise and then start falling. The innovator begins to make big profits as more and more customers buy. But competitors see the opportunity and enter the market. After East African Breweries created a sensation in Nigeria with its non-alcoholic malt beverage Alvaro, Coca-Cola followed eight months later with its own malt drink Novida.3 Some just copy the most successful product or try to improve it to compete better. Others try to refine their offerings to do a better job of appealing to some target markets. The new entries result in much product variety. So monopolistic competition—with down-sloping demand curves—is typical of the market growth stage. This is the time of biggest profits for the industry. It is also a time of rapid sales and earnings growth for companies with effective strategies. But it is toward the end of this stage when industry profits begin to decline as competition and consumer price sensitivity increase. Agree? and Why?