However, in the area of saturation, the growth will be small as prior to taking off the market. Hence, the flood of market is the additional value of inventory initiated for sale causing an undesired fall as per the product price, which further makes the products impossible for sale at a specific price. Business organizations have to take specific measures for avoiding the same (Gillespie, 2013). When there is intentional flooding of market as an effort for eliminating competition, it can be referred as dumping. This was well evident in the case of Warner Bros causing extra inventory out of low quality systems and offers. This took place as the low prices licensed sales of the merchandise by its competitors, extensive retail chain that could not keep up its appeal to the customers and lack of major movie to encourage the merchandise sales. Therefore, the product saturation was the key cause behind the failure (Liu, 2013).
The theories selected for explaining the failure are the theory of natural limits and product life cycle theory. The theory of natural limits indicates that each product and service has a defined and natural level of consumption (Nilsson, 2016). This theory was developed by Osenton in the book namely The Death of Demand: Finding Growth in a Saturated Global Economy. The theory states that the natural consumption level of the product can be determined usually after two decades of the sales and marketing investment (Simon, 2014).
The point of reaching down to the natural limits is referred as innovation saturation. When the suppliers consider offering large sales and market saturation in an abrupt manner, it refers to flood the market. Growth in logistics is a growth element bounded for limiting saturation under the scope of logistic growth and imaginary market. In graphical terms, the blue curve will be depicting the establishment of market size. The red curve of this graph will be describing market growth as the initial derivative for volume in the market. In the graph, the yellow curve will be illustrating weighted growth in terms of market size (Marks and Mirvis, 2010).As for the growth in logistics, the yellow curve depicts the fact that even a large size in the market will be strengthening growth with the approach of saturation. The growth of logistics will never turn out to be negative.