AMITY GLOBAL BUSINESS SCHOOL,

SINGAPORE
Product Portfolio & Product Life Cycle
Name: Vasudeva Rao Parveen Jadhav
Student ID: 17446044
Tutor Name: Mr. Michael Chance
Subject Name: Strategic Marketing
Assignment Title: Product Portfolio Management
Module Code: MKTM028
Word Count: 2816
Due Date: 29/05/2017
Submission Date: 28/05/2017

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 Table of Content
1.0 Introduction………………………………………………………………3
2.0 Literature Review……………………………………….…………………4
2.1 Product Portfolio Management……………………….…………………4
2.2 Product Life Cycle Theory………………….……………………………5
3.0 Critical Analysis……………………………..……………………………6
3.1 BCG Matrix of APPLE Inc…………………..………………………….6
3.2 Return on Investment......................................................................…...9
4.0 Recommendation……………………………………………..………….9
5.0 Conclusion…………………………………………………..……………9
6.0 References………………………………………………….……………10

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1.0 Introduction:
In this Assignment, I explained about product portfolio management as well as product life cycle
theory. In product life cycle theory I have also written about NIATEC operating process which is
related to product life cycle procedure. After that, I have chosen a software and gadget manufacturing
company so the company name is APPLE Incorporation and along with I explained about BCG
matrix of APPLE Inc. even with return on investment. End of the assignment I have given some
generic recommendation for the company as well as conclusion also.

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2.0 Literature Review:
2.1 Product Portfolio Management:
The product portfolio administration is starting from full test in the field of new product development
(NPD). It is the process of organizing options on which a company should do a business, thinking
about the objectives of the related organizations related to business wandering, threats and instability,
the costs and longer and longer run in many major years, attempts have been made to fix both types of
methods to work with the portfolio over the years. The idea of building a commercial portfolio was
developed in the second half of the 1950s and upgraded from the year 1970 so that a manufactured up
keeping tool (Rauscell and Eriksson, 1991) is over. The initial use of the portfolio administration
adjusts property distribution between the attributes units. In the 1990s, organizations increased the
designation of new products and designation of R & D property to use portfolio administration.
Despite the fact that the equipment and usage have changed after a while, the basic requirements
continue as before, that is, to allocate assets allocated to organizations in a way which is common
corporate technique (Dickinson, Thurnton and Graves, 2001). ) Cooper (1999) recognizes four
objectives related to portfolio governance: Increase portfolio estimate, complete coordination between
activities, Deliberately distribute the assets with well-balanced portfolio and assets. Various methods
have been created to learn and give title to a portfolio organization. These strategies can be broken
into three classifications (Cooper, 1998): traditional equipment, mapping portfolio technology and
numerical programming. Considering the standard option hypothesis process, conventional equipment
was considered as relevant at the operational level of individual activities. This approach of
positioning actions shown as different weighted choice criteria and those who choose the best is
widely used as a practice (Brainer, 1994). It may be that, as such, these techniques and other earning-
based strategies are often condemned for the dependence on budgetary information and failure to
increase the system of enterprises. This approach is actually near current practice on semiconductor
firm, in which we work with portfolio technology that outlines associations between advancement
processes and systems, along with these roles manage risk adjustments and important issues. .
Graphical and diagramming processes are used to adjust the portfolio. It may be that, often the
investigation is bound by subjective methods and is limited to one collected (Loch et al., 2001). These
subjective strategies regularly ignore the instability and collaboration between activities to ignore. The
third classification of the portfolio device, and most important, scientific programming and flow
research. In reality, this tool for portfolio. Determination between portfolio choice processes was the
most time-consuming. This process has given many effective issues under the special circumstances
under the various portfolios of the venture portfolio. One of the major elements of these models is the
ability to include collaboration between their ventures (Loch et al., 2001). Until 1971, scientific
programming models created in the form of help in enterprise determination issues have been
presented by a systematic audit (Gear, 1971). The model's characteristic was whether they depend
directly on the number, depending on the spot, or dynamic programming. The cases of agents of these
classes are illustrated and the need for information is assessed, work is done in estimates, the
simplicity of calculation, and the productivity of the product and the adaptability of the use.

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2.2 Product Life Cycle Theory:
So far, the process of a life cycle was identified with the customer and the market. There is a life cycle
of products that can increase their appeal. The life cycle of the client depends on exceptional
opportunities, while the life cycle of the object (like the market) depends on life (presentation) for
death (end) activities. The Administration of Products, Market and Customer Life Cycles can show
the opening, Hans, Hernick, and Thoben advertisements to help them achieve models and fulfil the
design of the generation, and, later, establish respect for the deals. You can. Products go through four
steps:
1) Introduction 2) Growth 3) Maturity 4) Decline.
In doubt, if another product is facing fewer deals, then arranging the presentation of the product can
be considered. Any business maintained for a minimum of six months is showing flagging the
development system. At that point when the deals begin to slow down, although the steady and the
concrete remain, the product has entered its development phase for a long time, when the decay starts
for the deal and finally the drop (six months above the deadline), the respect of the product is
decreasing. To survey an estimate of a product, it is expected that only one component is not
established, an product is now on, and additionally the display components, for example, the
immersion point though, that the level of achievement of the product They affect. To keep it clear,
how can those life cycle steps be brought on time to expand or retreat, and in the next stage, products
that start with one stage can be taken? This product is useful to overlay the market life cycle against
life cycle, to think about how well coordination of the steps. For example, if a product is evolving, the
object market may still fall has been, some should change, Hicks and McGowan. For example, if an
product is using outdated innovation or is desirable on a small customer base, then it can be respected
despite the fact that the deal is solid. In this way, promoting strategies will hope to upgrade or end the
market proximity of that product. Effects of entire promotional process to organize the life cycle of a
product. Table I shows the steps of the life cycle, whereas in Fig 1, a graphical representation of
product life cycle has been given in light of NIATTC operating procedures.

Figure 1: Product lifecycle management, NIATEC

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 3.0 Critical Analysis:
3.1 BCG Matrix of Apple Inc:
Large organizations often think that the extent to which it is difficult to choose, they should allocate
assets to different private company units. There are regular small lists, products and business lines,
which are integrated together for a large specialty unit. The business portfolio will perform best if the
Association will keep its weight on its properties and stay away from its shortcomings and strikingly
open the door, which will take the biggest advantage for both the organization of the overall industry
and for the extended piece of association. For this reason, a union should be kept in the record.
1) First of all, check your current position, the important pieces of the pie and also think that
products of our product are in the life cycle phase.
2) To adopt new advancement techniques for incorporation of new product offerings;
Disposal of poor performance or loss of pie or removal of existing members of objects
present at the falling phase of current life cycle.
There are some strategies that can be used for portfolio arrangements, although the BCG consulting
group or BCG framework is being used regularly. For this reason, before a matter of importance a
union needs to sort its strategic business units. An SBU can be described as an association that can
make autonomy for individual specialized units of a particular operation and destinations with the
Littlest Specialty Unit, and the Association will be able to make various businesses for this SBU Can
be free from pieces. It can separate a separate division, office, product offering, brand name or
different land area, depending on the cooperation of all business elements.
Business Growth Rate (Market Growth)

High
Select A few Divest the
Invest if Other
Needed

To Create Cash Cow Liquidate

Low

High Low

Relative Position (Market Share)

Figure 2: BCG Matrix of Apple

According to BCG matrix, the SBU’s are divided in to four categories, Stars, Cash Cows,
Question mark and Dog.

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Stars
These are objects or businesses that are killing their rivals in the market, are more a major
part of the overall industry than their industries and there are more notable open doors in the
market for development, generally these products are of interest to the new work. Need and
advancement to remain in the forefront of the market, essentially other contenders will enter
the market, the exploration done effectively in the field will be reversed. Our cooperation will
lose the piece of pie and this product will move towards cash cow.

Cash Cows
These are the products in which our union regularly appreciates the position of the market
leader, which is the extreme piece of the overall industry, but there are few or other open
doors for development. These products have achieved the development phase of their product
life cycle and we do not have to preach in these products. Associations only need to be
legally monitored to produce income with income stream, which are fundamental to interest
in the stars.

Question Marks
Question marks are such products in which our organization has brought down the overall
industry piece, but there is a heap of development in the market. It remains open on closed
occasions that we can promote innovative work and advancement of the product; we can also
catch the extra piece of the overall industry. This is a very suspicious option which cannot be
managed by the union due to alarm assets and monetary limitations in all positive NPV
projections because they are required, in which they contribute products and what they will
bandage.

Dogs
There are products in the dogs in which the union has brought down the overall industry
piece besides the competitive and in which market it works, it is not too extraordinary. In this
way, despite the opening of at least or no development, there is no possibility that we choose
to promote the promotion. Nobody can get enough money to break any of these products, so
the association is not making any loss or profit. With these lines, it will not be a suitable
option to encourage these products in business perspective.

The company we are working for is Apple Inc., Apple is a very useful organization and is
distinguished around the world because its product progresses and its innovative work division has
considerable interest, due to which apple is in its area Leading and market leader. Macintosh 128k,
iMac, iPod, Apple II, iTunes Music Store, Mac OS X, Laser Viter, Titanium PowerBook G4,
QuickTime, IMAAC Core Duo, IELF, IBook, Airport, Mac Small, under the stays of the main 30
impressive Apple products Generally, Final Cut Pro, Power Mac G5, Apple Script, Apple Dickle,
Fifth Epoch iPod, Macroit and Mac Paint, iTunes, System 7, PowerBook 100 System, Hyper Card,
Mac II, Power Mac G4 Cube, X Service Red, Newton, First Era Power Mac, Twenty Year
Anniversary Mac, therefore due to the huge number of such fruitful products, it is very difficult to
apply the BBG network to Apple. It has a very solid system of extremely useful products and business
lines, which are in their individual products at different stages of the life cycle.

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Stars
I have sorted the iPhone and the iPod in the Star Class, which means that both need help to be
interested in product improvement and more marked open doors are available in the market
for development. The most recent figures show that the growth rate for the iPod is now 28%
and for the iPhone 48%. Apple's 80% more piece of industry in the iPod appreciates the
closest similar scandisk to the market. In the iPhone, Apple is not the market leader, but 28%
of the overall industry, where Blackberry RIM producer is 41% of the pie. With these lines,
Apple is a challenger for the rim with significant range of relative pieces of the overall
industry; both the iPhone and iPod are extraordinary grounds in the long run for the
supplementary achievement. Associations require the stars, which will move forward after
moving towards cash cows in the long term and will be fundamental for the association's
future income earning.

Cash Cow
I have placed computerized downloading programming as money gauging for Apple's
iTunes. I Apple is clearly a market leader with 82% stake in this market segment, its closest
rival Napster is only 3% relative piece of the overall industry. The vast contrast of 79%
shows that Apple has defeated each of its associates in this market share. The growth rate for
iTunes is 7.6%, which indicates that it is a stable and evolving object and it does not need to
support enough speculation to improve the product by Apple Inc... This flood income
question is fundamental for paying stamps products.

Question Mark
I have installed Mac OS X and Mac software in question stamp classification, if there is a
possibility of an additional piece of the overall industry equipped with assets for
improvement and improvement of the product, otherwise they will return to dog
classification. Apple has brought down the overall industry piece in both parts of the market
and growth open doors are very high because the growth rate is very high. Mac OS X and
0.09% of the respective pie appreciate the 31.7% piece of Mac software for software, while
the development rate for Mac software is 32% and the relative piece of pie is 0.01%. Cannot
offer lower rates That Apple needs to focus on the improvement of its individual products
and advertise completely to the computer. In any case, Apple advertises cooperative energy
between PC business and its other product offerings, so separating from PC can adversely
affect its various products. Therefore, keeping any of such options in mind should be made
after caution and keep these elements in record

Dogs
Apples MACS can be considered as a davit classification because Apple is not the market
leader in this market segment and does not appreciate the key part of the appropriate part of
the overall industry and some obstacles to catching the piece next to the pie are largely in the
advancement of the product. The interested is finished.

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3.2 Return on Investment:
Along with the vast majority of the company's history, along with weightier items, a major
force in the technical division, the ongoing brain of Apple Inc. stock (NASDAQ: AAPL) has
been told much more. This is sometimes a tricky activity for financial experts who think back
thinking and think about this topic, "In this incident, I had put $ 100 earlier in stock 'X' first,
that investment would now be worth ... “Due to Apple, a small $ 100 investment in the
organization's stock towards the beginning of 2002 has now been developed in the middle of
2016, more than $ 5000 or more than 50 times of investment.
Source: http://www.investopedia.com/articles/markets/021316/if-you-had-purchased-100-
apple-2002-aapl.asp

4.0 Recommendations:
The organization needs to encourage the items given to customers, because customers have
the effect of the best quality goods in electronic business. In this way the organization should
identify its objects from its rivals so that they maintain premium assessment and quality. The
organization should increase special projects, it never harms any firm, but the reality has
proved to be absolutely valuable. With these lines, Apple should direct further enhancements
to drive potential clients and boot clients to drive and deal. The organization should always
create new events in the planning, details and elements of their items so that the market can
be ruled and their items and administration can be identified, because the innovation market
is very aggressive and the issue of clones is very common, a claimant It is highly remarkable
to keep resources in a new development, components and outlines for the organization to
clone and deal more without a stretch.

5.0 Conclusion:
It is close to key advertising in APPLE Inc., that mechanical venture is never easy. They have
a tonne contribution in R & D and must be active so that they struggle with their rivals in the
business like: Samsung regarding apples, it is worried that they are working so well because
it shows the size of their items. As Apple Inc. is expanding this way, these different
organizations are expanding and trying to make something attractive for their own great.
APPLE needs to make profound improvements. They do not have to tighten their apples
while buying their stuff, when they are in the bargain, they still have to focus more on the
client and those categories should be increased as they now have problems are.

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6.0 References:

P. K. S. Rousel and T. Erickson. Third Generation R&D: Managing the Link to Corporate Strategy.
Harvard Bus. School Press, Boston, MA, 1991.

M. W. Dickinson, A. C. Thornton, and S. Graves. Technology portfolio management: Optimization

R. G. Cooper, S. J. Edgett, and E. J. Kleinschmidt. New Product Portfolio Management: Practices and
Performance. Journal of Product Innovation Management, 16:333-351, 1999.
R. G. Cooper, S. J. Edgett, and E. J. Kleinschmidt. Portfolio Management for New Products. Reading
Mass: Addison-Wesley, 1998.
M. S. Brenner. Practical r&d project prioritization. Research Technology Management, 37:38--42,
1994.
Lockett A. G. Gear, A. E. and A. W. Pearson. Analysis ofsome portfolio selection models for r&d.
IEEE Transactions on Enginecring .Uanagc771cnt. E:-'1-18(2):66- 76. 1971.
C. H. Loch, M. T. Pich, C. Terwiesch, and M. Urbschat. Selecting r&d projects at bmw: A case study
of adopting mathematical programming models. IEEE Transactions on Engineering Management,
48(1):70-80, 2001.

C. Hans, K. A. Hribernik, K.-D. Thoben, “Improving reverse logistics processes using item-level
product lifecycle management,” International Journal of Product Lifecycle Management, Vol. 4, No.
4, pp. 338–359, 2010.

C. Hicks, T. McGovern, “Product life cycle management in engineer-to-order industries,”

NIATECH Lifecycle management Available on http://www.nicatech.com.sg/product-lifecycle-

http://www.quickmba.com/strategy/matrix/bcg/

http://www2.accaglobal.com/documents/boston_consulting.pdf

http://www.educationsupport.co.uk/downloads/rjh/BOSTON_CONSULTING_GRO
UP_MATRIX.pdf

http://www.apple.com/uk/

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