BUAD301 Lecture Notes - Lecture 1: Rebadging, Marketing Strategy, Game Theory

• School: University of Delaware
• Department: Business Administration
• Course: BUAD301
• Professor: Michal Herzenstein

Document Summary

Most businesses start off as qm (they require a lot of cash: stars. If the qm business if successful it becomes a star. A star is the market leader i(cid:374) a high gro(cid:449)th (cid:373)arket. It does(cid:374)"t (cid:374)e(cid:272)essarily produ(cid:272)e a positi(cid:448)e cash flow for the company: cash cowsinc, whe(cid:374) the (cid:373)arket"s a(cid:374)(cid:374)ual gro(cid:449)th falls to less tha(cid:374) (cid:1005)(cid:1004)% the star (cid:271)e(cid:272)o(cid:373)es a cash cow if it still has the largest market share. Enjoys economies of scale: dogs, weak market share in a low growth market. Holding such business is usually due to expectation regarding market turnaround or become the leader: bcg strategies (four, determine objectives and budget for each business unity, build, hold. Industry competition: coca-cola corp. now owns many other types of drinks like water, juices, and energy drinks. Advantages include more local jobs and better image, and the disadvantage is that prices of apple products will increase.