The relationship between the BCG Matrix
and the product life cycle
一、 the contact between the BCG Matrix and the
product life cycle
The horizontal axis of the BCG Matrix represents market share？and the vertical axis indicates anticipated market growth. The corporate business Is divided into four categories？they are
cash cows, stars, question marks, dogs. The product life cycle is a new product progresses through a sequence of stages from introduction to grow, maturity, and decline.
The four categories of corporate business correspond to the four stages of the product life cycle.
(1) Question marks businesses correspond to the
introduction stage of the product life cycle. Question
marks businesses are in an attractive industry but hold
a small market share percentage. In the introduction
stage？the firm seeks to build market share rapidly 、
build product awareness and develop a market for the
(2) Starts businesses correspond to the growth
stage of the product life cycle. Start businesses are in
a fast-growing market, and hold a dominant share of
that market. Their contribution to cash flow depends
on their need for resources. In the growth stage, the
firm seeks to build brand preference and increase
market share. Market share tends to stabilize.
(3) Cash cows businesses correspond to the maturity
stage of the product life cycle. Cash cows businesses in this
generate large amounts of cash, but their prospects for
future growth are limited. In the maturity stage, the market
reaches saturation. The primary objective is to defend
market share while maximizing profit.
(4) Dogs businesses in this category do not produce？
or consumer？ much cash. However？they hold no promise
for improved performance. In decline stage？there is a
downturn in the market？as sales decline？discontinue the
product？ liquidating remaining inventory or sell off.
二、 the difference between the BCG Matrix and the
product life cycle
；1？ The corporate business Is divided into four categories from two aspects of market share and anticipated growth rate，however？the product life cycle is
divided into four stages from two aspects of sales and time.
；2？ The BCG Matrix can roughly judge enterprise's
overall operating conditions？but the product life cycle only
reflects the market performance of a single product.
(3)The BCG matrix mainly studies the allocation and use of corporate resources, but the produce life cycle mainly studies the use of the product marketing strategy.
(4) The BCG matrix can reflects corporate a variety of different business conditions, but the product life cycle can not reflects all businesses and product in the curve.