Bcg&ge

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Bcg&ge

  1. 1. Tools for selection of International Markets
  2. 2. <ul><li>It is the management task concerned with the growth and future of business enterprise. </li></ul><ul><li>It provides the route map for the firm and helps to take decision in the future with a greater awareness </li></ul>Strategic Planning
  3. 3. BCG & GE Matrix Market Attractiveness Business Strength Market Growth Relative Position (Market Share)
  4. 4. Market attractiveness & Competitive strength is also important. Tools for International Market Analysis
  5. 5. Classification Market Attractiveness Strong Medium Weak Low Medium High Business Strength 5.00 1.00 2.33 3.67 5.00 3.67 2.33
  6. 6. <ul><li>Annual market growth rate </li></ul><ul><li>Overall market size </li></ul><ul><li>Historical profit margin </li></ul><ul><li>Current size of market </li></ul><ul><li>Market structure </li></ul><ul><li>Market rivalry </li></ul><ul><li>Demand variability </li></ul><ul><li>Global opportunities </li></ul>Market Attractiveness
  7. 7. <ul><li>Current market share </li></ul><ul><li>Brand image </li></ul><ul><li>Brand equity </li></ul><ul><li>Production capacity </li></ul><ul><li>Corporate image </li></ul><ul><li>Profit margins relative to competitors </li></ul><ul><li>R & D performance </li></ul><ul><li>Managerial personal </li></ul><ul><li>Promotional effectiveness </li></ul>Business Strength
  8. 8. Strategies <ul><li>Invest to Build </li></ul><ul><ul><li>Challenge for leadership </li></ul></ul><ul><ul><li>Build selectively on strength </li></ul></ul><ul><li>Protect Position </li></ul><ul><ul><li>Invest to grow </li></ul></ul><ul><ul><li>Effort on maintaining strength </li></ul></ul><ul><li>Build Selectively </li></ul><ul><ul><li>Invest in most attractive segment </li></ul></ul><ul><ul><li>Build up ability to counter competition </li></ul></ul><ul><ul><li>Emphasize profitability by raising productivity </li></ul></ul>
  9. 9. Strategies <ul><li>Protect & Refocus </li></ul><ul><ul><li>Manage for current earning </li></ul></ul><ul><ul><li>Defend strength </li></ul></ul><ul><li>Selectivity for Earning </li></ul><ul><ul><li>Protect existing program </li></ul></ul><ul><ul><li>Investments in profitable segments </li></ul></ul><ul><li>Build Selectively </li></ul><ul><ul><li>Specialize around limited strength </li></ul></ul><ul><ul><li>Seek ways to overcome weaknesses </li></ul></ul><ul><ul><li>Withdraw if indication of sustainable </li></ul></ul><ul><ul><li>growth are lacking </li></ul></ul>
  10. 10. Strategies <ul><li>Manage for Earnings </li></ul><ul><ul><li>Protect position in profitable segment </li></ul></ul><ul><ul><li>Upgrade product line </li></ul></ul><ul><ul><li>Minimize investment </li></ul></ul><ul><li>Limited Expansion for Harvest </li></ul><ul><ul><li>Look for ways to expand </li></ul></ul><ul><ul><li>without high risk </li></ul></ul><ul><li>Harvest </li></ul><ul><ul><li>Sell at time that will maximize cash value </li></ul></ul><ul><ul><li>Cut fixed costs and avoid investment </li></ul></ul><ul><ul><li>meanwhile </li></ul></ul>
  11. 11. Overview Business Strengths Market Attractiveness Low High Low High Attractive Moderate Attractive Unattractive
  12. 12. BCG v/s GE Market Attractiveness Market strength 9 cell Multi Business Units Secondary tools BCG GE Market Growth Market share 4 cell Multi Products Primary tools

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