Product Life Cycle & The Boston Matrix

Product Life Cycle & The Boston Matrix

1. The stages through what a product goes through from being in research and development to eventually being withdrawn or continued with an extension strategy

2. A model which analyses a product portfolio according to the growth rate of the whole market and the relative market of the product within the market

3. Cash Cow, Stars, Problem Child/Question Marks and Dogs

4. Research and Development, Launch, Growth, Maturity, Saturation, Decline and Extension Startegy

5. The best product for a business is a cash cow. A product that has a large market share but little growth resulting in low costs as they promote themselves and need little costs attached to promotion of the product. It is in the maturity or saturation phase on the product life cycle

6. A Dog product is the worst for a business and is a product that has failed or come to the end of its shelf life and is close to withdrawal

7. The purpose and advantage of the Product Life Cycle and Boston Matrix is that the business can assess their best and most successful products and the products that are coming to the end of their life to discontinue and save money on them to stop producing and promoting them.