FAQ
Product/Market Life Cycle
Note that these responses are not official additions to the theory, only explanations for the cases based on the specific questions received.
The company's sales have been growing at around 20% per year. Can I use this number to determine the life cycle stage?
No. The product/market life cycle relates solely to the market that you define. It is a tool to analyze the industry's stage. Hofer then recommends strategies for the company based on the industry life cycle stage. No data on the company should be used to justify the market life cycle stage.
I can't find the industry growth rate in the case.
For life cycle, you only need to know the stage of the life cycle, not the exact growth rate. See the BCG FAQ page for information on analyzing the market.
When dealing with the retail industry, how can we address the process and design stages of the product/industry life cycle, since retailers don't make the products themselves?
They design both their products (when they decide what to purchase to resell and how their stores are designed) and they design the process of how they buy and sell products. All businesses have processes, not just manufacturers.
For the Life Cycle Theory, could you please explain what GNP Growth means in the Market Growth Rate?
3% is the BCG number for GNP growth, 2% is the BCG population growth rate number.
- Last revised 10/01/2005 -