Corporate portfolio.pptxgggggggggggggggg

corporate

1. Assessment of Corporate portfolio Course Instructor Dr. Mohit Jamwal

2. Learning Outcomes To analyze the product portfolio of various firms with the help of available product management tools namely BCG matrix and GE matrix

3. Managing Products

4. Key Product Management Decisions

5. Product Management Levels The product category The product line The technology platform The product itself

6. Product Management Tools Product Portfolio Management Tools BCG Matrix GE Matrix Product Life Cycle

7. The BCG Matrix Growth share matrix is a portfolio planning method that evaluates a company’s products in terms of their market growth rate and relative share. Developed by Bruce Henderson of BCG Group in 1970’s Products are classified as: Stars, Cash Cows, Question marks and Dogs Marketing efforts, or investments, will change, depending on the product’s classification

8. The BCG Matrix

9. The BCG Matrix Stars are high-growth, high-share businesses or products requiring heavy investment to finance rapid growth. They will eventually turn into cash cows. Cash cows are low-growth, high-share businesses or products that are established; require less investment to maintain market share in a stable market. Question marks are low-share business units in high-growth markets requiring a lot of cash to hold their share. Dogs are low-growth, low-share businesses and products that may generate enough cash to maintain themselves but do not promise to be large sources of cash. Not worth much investment.

10. General Electric Matrix Developed by Mckinsey GE-McKinsey nine-box matrix  is a strategy tool that offers a systematic approach for the multi business corporation to prioritize its investments among its business units. GE-McKinsey  is a framework that evaluates business portfolio, provides further strategic implications and helps to prioritize the investment needed for each business unit (BU).

11. Understanding the tool

12. Industry Attractiveness Some factors for making the industry attractive are listed below: Long run growth rate Industry size Industry profitability: entry barriers, exit barriers, supplier power, buyer power, threat of substitutes and available complements (use  Porter’s Five Forces  analysis to determine this) Industry structure (use Structure-Conduct-Performance framework to determine this) Product life cycle changes Changes in demand Trend of prices Macro environment factors (use  PEST or PESTEL  for this) Seasonality Availability of labor Market segmentation

13. Competitive strength of a business unit or a product The following factors determine the competitive strength of a business unit: Total market share Market share growth compared to rivals Brand strength (use brand value for this) Profitability of the company Customer loyalty VRIO resources or capabilities (use  VRIO framework  to determine this) Your business unit strength in meeting industry’s critical success factors (use  Competitive Profile Matrix  to determine this) Strength of a value chain (use  Value Chain Analysis  and  Benchmarking  to determine this) Level of product differentiation Production flexibility

14. Managerial Implications

15. Thank you