Performance Oversupply and Market Dynamics

"Once two or more products credibly satisfy the market’s demand for functionality, customers can no longer base their choice of products on functionality, but tend to choose a product and vendor based on reliability." The concept of performance oversupply is crucial in understanding the transition between different phases of product competition. Initially, products compete based on functionality, but as multiple products meet the market's functionality demands, the basis of competition shifts to reliability, then convenience, and finally price. This shift is driven by performance oversupply, where vendors exceed the market's demand for a particular attribute.