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computer software industry, the dominant player is Microsoft
Windows. To maintain a dominant position, Microsoft need to

constantly reassess and monitor the portfolio in terms of the PLC,
introduce new products and harvest and divest declining products.

• Strong: There are leaders within the industry but these leaders do not
exhibit absolute dominance because there are other strong players
within the industry. For example, Unilever compete successfully in the
toiletries market but equally Procter and Gamble is also a strong

player.

• Favourable: A favourable position is established where the industry
is extremely fragmented and market position is pursued through a

strategy of differentiation or niche strategy. For example, in the highly
fragmented, highly competitive computer industry, Dell Computers

have adopted a differentiation strategy through its just-in-time,
customized, direct marketing approach.

• Tenable: This describes a position that can be maintained through a
niche strategy with specialized product and services. For example,
localized organic farmers who serve this niche industry.

• Weak: This position is not sustainable and effort can be made to
maintain a position or make it more tenable or exit the market.

7.8 Product analysis

According to Doole and Lowe (2008), the major focus of product policy is

on new product development and managing the portfolio. The increased
pace of the activity has several consequences for product management at

both ends of the product life cycle. The factors that need to be taken into
account in managing the product portfolio are:

• The firm’s objectives

• The company’s existing range of products and the degree of overlap
in the positioning of products in the range (BCG Matrix)

• The stage in the life cycle that the products have reached (BCG
Matrix)