marketing week 5 :BCG Matrix

BCG matrix

competitive advantage

an advantage over competitors gained by offering consumers greater value

an example of new products in new market using same business

apple TV

An example of existing products in existing market

apple phone trade in

an example of new products in an existing market

apple airpods

an example of existing products in new market

online store in india

competitor analysis: list the three steps

• identifying the company's competitors

• assessing competitor’s objectives, strategies, strengths, weaknesses, and reaction patterns

• selecting which competitors to attack or avoid

strategic group is

a group of firms in an industry following the same or a similar strategy

compeittor myopia

setting the boundary of their competition set too narrow

assessing competitors means

• determining competition’s objectives

• identifying competitors' strategies

• assessing strengths and weaknesses

• estimating competitors’ reactions

customer value analysis is

an analysis conducted to determine what benefits

target customers value and how they rate the relative

value of various competitors’ offers.

in what ways can having competitors be helpful to a business?

competitors may..

• share the cost of market and product development

• help legitimize new technologies

• increase total demand

• serve less-attractive segments

Explain STARS in BCG

high growth

• will need lots of investment to keep up with fast growth

high market share

• market is booming

Explain Cash Cow in BCG matrix

High market share, Low growth

• the market has slowed down but im still winning

• bc growth is slow you dont need to spend much so these divisions just quietly generate tons of cash.

• the cash you get is then used to fund your STARS and QUESTION MARKS

explain Question Marks in BCG Matrix and ex

Low Market Share, High Growth

• The market is growing fast but you haven't established yourself yet.

• These are risky — they need heavy investment but might not pay off.

• They can either become Stars or sink into Dogs.

EX= The Nexa Health biotech

explain DOGS in the BCG Matrix

Low Market share, Low growth

• The market is slow AND you have a small share.

• These divisions don't make much money and don't have great prospects.

• Companies usually consider cutting these loose.