Product Life Cycle versus Ansoff Model

Product Life Cycle
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Product Life Cycle versus Ansoff Model

Can the relationship of Ansoff and the Product Life Cycle model be summarised as follows?
- Product Development - Introduction Stage of PLC.
- Market Development - Growth stage of PLC.
- Market Penetration - Maturity of PLC.
- Diversification - Decline stage?

Project Manager, Australia

Relation Between PLC and Ansoff Matrix

Hi Nawas, I believe that market penetration is long before maturity and we can place this categorically somewhere in between the growth stage and the penetration stage. Hence we cannot relate it with Ansoff Matrix.

  Philippe Guenet
Coach, United Kingdom

What if Products are Already Diverse?

I always find traditional frameworks reductive and ineffective in the age of digital, because products are no longer just one thing that has a lifecycle. Products are a mix of physical product (or more and more software), content, service, and platform.
Traditional businesses are getting disrupted because they fail to appreciate that the product is not one unit, but that some people can step into the value chain of the product. Aggregators step into the forefront of the value chain, intermediate the relationships and disintermediate businesses this way. More importantly, they also commoditise the businesses leading to price dynamics and consolidation underneath (platform strategies).
When you are a business and getting disintermediated from the relationship with your customers at one end, and undercut by commoditised platforms lower down the value chain, you get very much disrupted.
If you focus the strategy on products as a unit, you cannot see the granularity of the value chain and the threats (as well as opportunities) that may exist in those.
I am doing some maps in retail banking at the moment and the dynamics are quite fascinating.

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