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Editor's Notes

1. Introduction – early adoptersGrowth – early majorityMaturity – late majorityDecline -- laggardsGreatest challenge is “crossing the chasm” between early adopters and early majority/
2. Four factors that trigger a repositioning action are:Reacting to a Competitor’s Position -- Competitor’s position is adversely affecting sales and market share. Reaching a New Market -- Repositioning a product allows it to reach a new market. Catching a Rising Trend -- Changing consumer trends can also lead to repositioning a product. Changing the Value Offered – Trading up or Trading down
3. Introduction – early adoptersGrowth – early majorityMaturity – late majorityDecline -- laggardsGreatest challenge is “crossing the chasm” between early adopters and early majority/
4. The position of the SBU or product in the nine cell matrix will again lead to six normative strategies (rather than the three prescriptions in the BCG matrix) and, it is claimed, the analyst is offered sharper positioning options and strategic choices than with the BCG matrix.Those normative strategies are:1. Invest to hold: Incremental investment in the SBU by the marginal amount necessary to offset any potential erosion due to external forces.2. Invest to penetrate: Increased investment with a view to increase the business strength of the SBU or product.3. Invest to rebuild: Investment to counter any damage done by other strategies that are no longer achievingoptimal results.4. Selective investment: Investment in SBUs that offer a marginal return through a favourable cost/benefit ratio. Allow those with an unfavourable cost/benefit ratio to decline.5. Low investment: By minimising investment, pursue a harvesting strategy and release cash for other investments.6. Divestment: Exit the market.Pros:The model uses a richer set of analytical variables and allows the analyst greater flexibility. The greater flexibility arises since, firstly, a larger set of variables is included in each of the parameters and, secondly, because the importance of the variables can be weighted to indicate their relative importance when the position on the axes is calculated.Cons: This model still suffers from the criticism of offering prescriptive solutions and, as such, should only really be considered as a descriptive model.