Page 189 - GLOBAL STRATEGIC MARKETING

• The manufacturing capacity available

• The likely receptiveness of the market to the new product

• The competitive structure of the market.

7.8.1 Managing the portfolio (BCG Matrix)

The product life cycle can be used in conjunction with the BCG Matrix in
order to determine a balanced portfolio. The objective of the BCG Matrix

is to determine the organisation’s portfolio in terms of market growth and
market share. This can measured in terms of strategic business units,
products, services, brands or even country life cycles. Organisations

should ideally have as many cash cows to fund and introduce ‘new’
products into the portfolio; whether this is for the domestic or the

international market.