FM 117 Chapter Notes - Chapter 2&4: Boston Consulting Group, Strategic Planning, Marketing Myopia
16 May 2016
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A single business or collection of related businesses. Implement changes that us existing assets to provide added convenience to existing customer and potentially entice customers from other brands: adjacent innovation. Decisions are designed to take company strengths into new markets: transformational innovation. Stars: fast growing market leader; bets marketing tactic is to protect existing shares by reinvesting in product improvement, better distribution, more promotion & product efficiency. Cash cow: a business unit that generates more cash than it needs to maintain its market share. Main market dominance by being the market leader and making technological improvements in the products. Problem child (question mark): a business unit that shows rapid growth but poor profit margins. Invest heavily to gain market share, acquire competitors or drop the sbu. Dogs: a business unit with low growth potential and a small market share. Ie: blackberry: 4 basic strategies after portfolio matrix:
