Stage one companies offer their clients the accepted product. In stage two, competitors enter. Differentiation of this core product becomes vital. Enter the marketers. They listen and make the refinements the customers ask for: more colors, an ashtray so that drivers can smoke, and later an AM/FM radio. Answering customer needs is the driving force during stage two of an industry. Stage two is market-driven. Stage two companies offer their clients the desired product.
