Product Lifecycle, & Product Portfolio

Enterprise Strategy/AW/04

Arj Wignaraja

The Product Lifecycle Model – 4 Stages

Time

Sales Volume

Sales VolumeProfitsCash flow

Introduction Growth Maturity DeclineDevelopment

Modify the Product Modify the Market Reposition the Product

Managing the Product Life Cycle – 3 Strategies

Theory in Practice: Kellogg Nutri-Grain Bars and the Product Life Cycle Model

Theory in Practice – Apple’s Product Portfolio

Time

Sales Volume

The BCG Matrix – A Way to Manage Cash

Relative Market Share

Mark

et

Gro

wth

Rate

, %

High Low

Hig

hLo

w10X 5X 1X 0.5X 0.1X

0

10

20

Cash Neutral

Cash Generator Cash Neutral

Cash User

TATA Group – Business Unit View

TATA Group – A Portfolio View

LVMH – Luxury Group on the Rise

LVMH – A Portfolio View

The GE Business Screen Matrix: 6 Strategies

Invest to hold

Business Strength FactorsM

ark

et

Att

ract

iven

ess

Fact

ors

High Medium LowH

igh

Mediu

mLo

w

Invest to penetrate

Invest to rebuild

Invest to penetrate

Selective investment

Low investment/divestment

Selective investment

Low investment

Divestment