Topics: Strategic management, Marketing, Strategic business unit Pages: 7 (1622 words) Published: March 3, 2013
What’s Portfolio Analysis?

It’s basically a product portfolio in which we rank our product or we can say that where our products are stands in the market. 
We’ve three Matrices under this tab.
BCG Matrix (Boston Contingency Group)
GE Matrix (General Electric)
Product/Market Growth Matrix
BCG Matrix

It is what how we maintain or analyze our product. Here’s the matrix. BCG Matrix Explanation

If the industry is growing and your share is low, you’requestion mark (?). What are you doing? You need toimprove. Like Snakes industry is growing but there’resome snakes with no name. You must’ve seen it. 1

If the industry is growing and your share is also highthen it’d be Star`1s. Like Beauty Soap i`ndustry. LUX is a product of Unilever. Unilever’s all Beauty Soaps are allstars. Do you know?

When you start your  business, your productis in "?" position. It'sup to you where youwant to go, Stars Or dogs

BCG Matrix Explanation

If the industry growth is high and but your share is high then your product’s Cash Cow.Like industry of Tetra Pack packaging. Only“Packages Ltd” and “Tetra Pack” has the plant of Packet Milk and Juices packaging. 

If the industry growth is low and your share isalso low then your product is dog. Better toexit from the market. You’ll be amazed to seethe example. Nestlé's Polo is the example GE Matrix

This matrix is given by General Electric which isworld biggest electronics British company. 
It’s what you’ve to do with BCG Matrix.

GE Matrix Explanation

It is used to strengthened and build thesekinds of SBUs (Strategic Business Units). Bold andwell financial marketing efforts are needed here. It’s basically use when you start a new business as thename suggests. 

It’s used to protect your current SBUs. LikePEPSI is protecting its product. Because Coke is thecompetitor of PEPSI and they’re allocating resources.You can say it a defensive approach. It also generatescash needed by other SBUs or products GE Matrix Explanation

They lack an attraction market at a strong position. These SBUs shouldn’t receive substantialnew resources instead expenditure should cut tominimize any remaining profit. You know that*CDL’s Dairy Queen milk is operating in Loss? 

In this position, an SBU shouldn’t receiveany resources. Probably, the best approach is toeliminate from the organization’s portfolio by sellingit or shutting it down. Point To Ponder:
What aboutPOLO? I think it fits here… But why Nestle is notshutting it down? *Chaudary Dairies Limited (Formally Haleeb Foods Ltd)
Product/Market Growth Matrix

It is about the market. What you’re gonna do or what you’ve to do. So get a look at the matrix below… ExistingProductNew ProductExistingMarket
New Market
Product/Market Growth Matrix

Market Penetration:
When someone snatches the marketshare of other. Do you know that there’s big fight betweenHaleeb and Milkpak? Both are always willing to penetrate inthe market. 
Market Development:
It’s like I’m supplier of BoardMarkers. I’m supplying to different educational institutes. If i begin to supply my product to different business organization,it would be market development. What do you think about thedevelopment of Mobile Phones market in Pakistan? Mobileswere being used by only businessmen but now… you musthave your mobile phone I think Product/Market Growth Matrix

Product Development:
If you’re gonna introduce anew product in the market, it’d be productdevelopment. Have you seen Nestlé's Pure Water?You must know that Milkpak is also the product of  Nestlé . 
When we have totally new productin a new market. Conglomerates can also put under this heading. Do you know Mitsubishi is the biggestconglomerate of the world? There’re other likeBerkshire Hathaway (USA), Aditya Birla Group(India), Reliance Industries (India), Habib...
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