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Portfolio%20Analysis%20Revisited

Portfolio%20Analysis%20Revisited - Performance is...

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Portfolio Analysis and Strategic Marketing  Plans In the BCG Matrix, Market Attractiveness is represented by Market Growth Rate. In the BCG Matrix, Competitive Advantage is represented by Relative (to the largest competitor) Market Share. Notice that in this example the horizontal axis is more positive on the right, instead of the left, as it is in the BCG matrix. This is a more complex, more modern example of a portfolio analysis matrix. Notice, we have more categories (9 vs. 4) in which to place our business units, brands, or products. As you will see on the following slides, what is measured on each axis is also more complex and inclusive. This example also offers more possible strategies to follow. Looking at this more complex matrix, you can see that P & G’s move to divest Folgers may now makes more sense. Folger’s Position =
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The Elements of the Portfolio Analysis  Matrix In the BCG matrix, Business
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Unformatted text preview: Performance is represented by the size of the circle representing each element, which equates to dollar sales. You could still use the circle here, but the size would depend The three factors under each category are the major elements that go in to determining position on the grid. On the next two slides you can see that these factors get even more specific. Factors That Shape Market Attractiveness Determinants of a Competitive Advantage After reviewing this, you may ask yourself, “ok, so why does the text include such an outdated and simple matrix, like the BCG matrix”? The answer lies in the simplicity of the matrix; for many students who are unfamiliar with the idea of portfolio analysis the BCG is a good introduction to the basic idea of such analysis. It also uses some easy to remember names (star, ?, cash cow, and dog) to classify business units, brands, or products....
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