Product Life Cycles and the Boston Matrix. Product Life Cycles and the Boston Matrix. Product Life Cycle – shows the stages that products go through from development to withdrawal from the market
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Effects of Extension
PLC and Profits
- Potential for high revenue growth
Is your product starting to
embarrass your company?
Problem children – worth spending
good money on?
Importance of maintaining a balance of products in the portfolio at different stages of the PLC – Boston Matrix helps with the analysis
(3) Cash from ‘C’ used to support growth of ‘D’ and possibly to finance extension strategy for ‘B’?
(2) Cash from ‘B’ used to support ‘C’ through growth stage and to launch ‘D’. ‘A’ now possibly a dog?
(1) ‘A’ is at maturity stage – cash cow. Generates funds for the development of ‘D’
The product portfolio – four products in the portfolio