Exam2 FC2 - Focus Cost Leadership If you’re not big it’s difficult in the long-run although you could pull it off in the short-run small and

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Unformatted text preview: Focus Cost Leadership If you’re not big, it’s difficult in the long-run, although you could pull it off in the short-run; small and medium firms have a better shot with differentiation. How many different strategies do you need to employ? BCG and GE Model Portfolio Step back and integrate individual strategies to determine whether a new strategy will help or hinder what we already do. Models that integrate individual strategies (portfolio models): BCG Model GE Model Similar to the BCG Model, but more complex to give more accurate answers. Assesses our portfolio of industry activity, which can be broadened to include products within and industry, regions within an industry, etc. BCG Model Industry Growth; Market Share For the BCG Portfolio Model, ____ determines whether it’s good to play while ____ determines if we’re good at playing (dominant or minority). Anchor the ends and plot where each business line (or market, or product) lies, relative to industry norms/standards. Question Marks Stars High industry growth and market share. High industry growth and low market share; determine what you can do to be more competitive. Cows Dogs Low industry growth and market share; divest. Low industry growth and high market share; stopped growing. Dogs Portfolio Want a mix between stars, cash cows, and question marks, because stars are expensive and difficult to keep up....
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This note was uploaded on 09/08/2011 for the course MAN 4720 taught by Professor Staff during the Spring '08 term at University of Central Florida.

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Exam2 FC2 - Focus Cost Leadership If you’re not big it’s difficult in the long-run although you could pull it off in the short-run small and

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