Strategic Management- HOFER’S PRODUCT -MARKET MATRIX and DIRECTIONAL POLICY MATRIX
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An introduction to HOFER’S PRODUCT -MARKET MATRIX and DIRECTIONAL POLICY MATRIX.
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Strategic Management- HOFER’S PRODUCT -MARKET MATRIX and DIRECTIONAL POLICY MATRIX
- 2. HOFER’S PRODUCT-MARKET MATRIX Development Maturity/saturation Shake out Growth Decline WEAKAVERAGESTRONG E D C B A HIGH POTENTIAL AND DESERVES EXPANSION STRATEGIES THROUGH LARGE INVESTSMENTS HAS A STRONG COMPETITIVE POSITION. NEEDS EXPANSION STRATEGIES AS THE PRODUCT ENTERS IN SHAKE-OUT STAGE. IS PROBABLY A “DOG” CAN BE USED FOR CASH GENERATION & DIVERTED TO A & B POTENTIAL LOSER & MAY BE CONSIDERED FOR DIVESTMENT COMPETITIVE POSITION MARKETEVOLUTION/INDUTRYSTAGE
- 3. ADVANTAGES • CAN BE USED TO IDENTIFY AND TRACK DEVELOPING WINNERS • ILLUSTRATES HOW THE FIRM’S BUSINESSES ARE DISTRIBUTED ACROSS THE STAGES OF INDUSTRY EVOLUTION
- 4. DIRECTIONAL POLICY MATRIX LOSS MAKING UNITS FALLS HERE. NO FUTURE PROSPECTS THAT’S WHY DIVEST. RELEASED RESOURCES CAN BE PUT TO ALTERNATIVE BOTH MATRIX ARE ON POSITIVE SIDE. MUST RECEIVE TOP PRIORITY SO TO SUSTAIN LEADERSHIP OPERATIONS CAN BE CONTINUED FOR CASH FLOWS AND PROFIT. WHICH CAN BE FURTHER REMITTED TO OTHER UNITS IN NEED.