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Analysis
XIME
Perhaps the most common type of product portfolio analysis that firms
use to analyse their product mix is the BCG Matrix. The AQA
specification states that students need to know this form of product
portfolio analysis.
XIME
2.15 Product
2
Product Portfolio
the range
of products a
company has in
development or
available for
consumers at any one
time
Managing product
portfolio is important for
cash flow
3
BCG Matrix
XIME
What do
these terms mean?
5
Cash Cows:
High market share
Low growth
markets maturity
stage of PLC
Low cost support
High cash revenue
positive cash
flows
9
10
Dogs
Low
Stars
Cash Cows
Market Share
High
12
XIME
13
Problem Children
Stars
Dogs
Cash Cows
High
Video
Low
High
14
Market Share
16
four
growth
of funds
D
and
in
the
portfolio
atfor
Generates
C
through
growth
products
in
the
possibly
toto
finance
different
stages
ofof
the development
stage
and
portfolio
the
PLC D.
BCG
extension
strategy
D
launch
A Matrix
now
helps
with the
for
B?
possibly
a dog?
analysis
Sales
(1)
(2)
(3)
D
A
C
Time
19
http://www.authorstream.com/Presentation/Sanjaysks344804-itc-education-ppt-powerpoint/
http://www.slideshare.net/ranjanvarma/bcg-matrix-foritc-ltd
Portfolio Analysis
GE Tool for Analyzing Opportunities &
Ability to Compete
GE Portfolio Analysis
Business Strength
Multiple Indicators
22
XIME
23
GE Portfolio Analysis
Sample Industry/Market Indicators
Market Factors
Size
Growth Rate
Cyclicality
Seasonality
Competition
Type of competitors
Degree of Concentration
GE Portfolio Analysis
Industry/Market Indicators
Technological
Patents & copyrights
Will it become obsolete
Sociopolitical
Social attitudes & trends
Laws & government regulations
26
GE Portfolio Analysis
Business Strength Indicators
Market
Companys Market Share
Companys Sales or Share Growth Rate
Competition
Strength of product, promotion, price, distribution,
financial resources, management relative to
competition
GE Portfolio Analysis
Business Strength
Indicators
Technological
Companys ability to cope with change
Technological skills
Patent Protection
Sociopolitical
Companys responsiveness & flexibility
28
GE Portfolio Example
Market Factor
Weight
Rating (1- 5)
Value
Size
Growth
Profit Margins
.33
.33
.34
5
3
2
Business
Market Share
.33
Product Quality .33
Distribution Net .34
1.65
.99
.68
3.32
1
5
2
.33
1.65
.68
2.66
29
Thank You
XIME
30