AWL (GE/McKinsey approach)
Describe the business portfolio and the options available to AWL. The business portfolio of AWL’s 1998 fiscal year consists of three SBUs, namely three new marketing textbooks, including Advertising and Sales Promotion Strategy, Analysis for Strategic Marketing and Marketing Engineering. We can also see these three textbooks in the GE Portfolio Matrix as shown in Graph 1 and Graph 2.
AWL should have clear understanding of these three new textbooks in order to prioritize the promotional resources for them. For example, the book named Marketing Engineering is a bit different from the other two, since it doesn’t currently have a large natural market but might ultimately be a big winner if it is promoted properly.
Besides, since AWL is already a publisher with a traditional image, AWL should pay much attention to which direction they want to go on. That is to say, AWL is suggested to taken the area they intend to exploit into consideration when allocating the promotion resources and investments to these three new textbooks.
2. What does the GE approach suggest about the relationship between AWL’s strategic objectives and its promotional plans? The GE approach tells us that how AWL allocates the resources to market these three new textbooks depends a lot on AWL’s strategic objectives and their promotional plans. That is to say, how AWL draws its promotional plans depends on in which direction that AWL wants to go. The three cells in the upper right of the GE Matrix are those in which AWL has a relatively strong market position and should be considered for more investment in order to gain substantial growth. The three cells along the diagonal are of intermediate overall attractiveness, and AWL should consider a policy selectively enhancing businesses in those cells to generate profit. Last but not the least, the three cells in the lower left corner are low in overall attractiveness, and AWL should consider harvesting...
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