LIFE-CYCLE MATRIX

LIFE-CYCLE MATRIX

Two variables used:

• INDUSTRY’S STAGE IN LIFE-CYCLE -- Plotted on vertical axis
  • Development, takeoff/growth, competitive shakeout, maturity/saturation, decline
  • BUSINESS UNIT’S COMPETITIVE POSITION --Plotted on horizontal axis
    • Strong, average, weak
    • Each business unit appears as a “circle”
      • Area of circle is proportional to size of industry
      • Pie slices within circle reflect business’s market share in industry

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